Oil fell more than 3.5 percent to near $69 a barrel on Wednesday after U.S. government data showed a surprising jump in crude and fuel supplies, which raised concerns about demand in the world's biggest energy consumer. The U.S. Energy Department reported that crude inventories rose 2.8 million barrels last week, in contrast to analysts' expectation of a 1.5 million-barrel decline. The department's Energy Information Agency (EIA) said gasoline supplies rose 5.4 million barrels to 213.1 million, and distillates—including heating oil, diesel, and jet fuel—rose 3 million barrels to a 26-year high of $170.8 million. Oil prices were already lower prior to the release of the EIA data. A report released late Tuesday by the American Petroleum Institute showed a surprising increase in U.S. crude inventories. The global recession has lowered petroleum demand in the United States and other big consuming countries, helping to push crude from record highs above $147 a barrel reached in July 2008 to below $33 a barrel in December. Prices have since rebounded on signs of an economic rebound, with oil markets closely watching stock markets and economic data.
