Oil prices rose sharply on Wednesday after a U.S. government report showed that crude supplies fell by far more than analysts had predicted for the second consecutive week. Light sweet crude oil for February delivery jumped nearly $2, or 2.5 percent, to above $76 a barrel in late-morning trade on the New York Mercantile Exchange. Gasoline futures also rose. The U.S. Energy Department said crude inventories fell by 4.9 million barrels to 327.5 million barrels last week. Analysts had expected a decline of only 1.1 million barrels. Gasoline supplies fell by 900,000 barrels, less than the 1.3 million barrels analysts had forecast. Inventories of distillates (including heating oil, diesel, and jet fuel) fell by 3.1 million barrels last week, the department's Energy Information Administration (EIA) said. Analysts had expected a drop of 2.25 million barrels. Distillate data, especially on heating oil, is in focus as winter begins to hit in the United States and Europe. Average retail gasoline prices have been hovering around $2.60 a gallon (3.8 liters) for weeks as oil has traded around $75 a barrel.
