The US commercial crude oil inventories increased considerably last week resulting in a plunge in the oil prices.
The US Energy Department reported on Wednesday that crude oil inventories rose by 2.1 million barrels to 295.9 million in the week ending on Dec. 17.
Heating fuel and diesel also rose by 600,000 barrels to 119.9 million barrels, surprising analysts who had predicted a drop. Heating fuel stockpiles were flat at 49.9 million.
US gasoline inventories also surged by 1.8 million barrels to 211.4 million barrels last week.
The surprising increase of US stocks of crude oil and other products resulted in the sharp decline of oil prices in the early trading in New York market. Light sweet crude for delivery in February plummeted by 2.11 dollars to 43.65 dollars a barrel in mid-morning trade.
