Oil prices fell Wednesday as traders ignored a surprising drop in U.S. crude supplies and instead focused on government data that showed weak U.S. consumer demand. Light sweet crude for November delivery fell more than $1 to below $70 in midday trading on the New York Mercantile Exchange. Prices fell immediately after the Energy Department reported that U.S. crude inventories fell by 1 million barrels last week. The drop was unexpected as analysts thought supplies would grow by nearly 2 million barrels. The department's Energy Information Administration (EIA) also said gasoline supplies grew by 2.9 million barrels last week, and inventories of distillates (including heating oil, diesel, and jet fuel) grew by 700,000 barrels. Analysts had expected smaller increases for both categories.
