Oil prices dip on supply news

| 5/24/2006

Oil prices fell a bit Wednesday, May 24, after the Department of Energy released a report showing rising supplies of gasoline.

Light, sweet crude fell to $71.40 per barrel in midday trading on the New York Mercantile Exchange, down from a high of $71.76.

The Associated Press reported that falling crude oil inventories kept the price of oil from dipping too low.

The DOE’s report showed that crude oil inventories fell by 3 million barrels for the week of May 14, though the overall inventory level is still 3.6 percent higher than last year at the same time.

Gasoline inventories, meanwhile, rose 2.1 million barrels to 208.5 million barrels. This is about 3 percent lower than last year.

Supplies of distillate – which includes diesel – rose by 2.5 million barrels to 117.1 barrels. This is about 8 percent higher than levels from a year ago.