Oil closed at its lowest closing price in three months Wednesday, Nov. 2, as traders reacted to the news that U.S. supplies were better than expected.

According to the Energy Information Administration, crude inventories rose by 2.7 million barrels for the week ending Oct. 30 to 319.1 million barrels. That’s 12 percent above levels from the same time period in 2004. 

Oil closed at $59.75 on the New York Mercantile Exchange Wednesday, Nov. 2. However, by Thursday, Nov. 3, it had risen back above $60 per barrel in midday trading.

Warmer than normal temperatures in parts of the United States kicked off November, leading to less than expected demand in home heating oil. This, in turn, led to the drop in crude oil prices, The Associated Press reported.

The AP said that investors are still concerned about the struggle to get oil production back to normal in the Gulf Coast region following the damage from the hurricanes.

The U.S. Minerals Management Service reported that 64 percent of daily oil production and 50 percent of natural gas production in the Gulf of Mexico remained off-line as of Nov. 3.