Crude oil futures rose due to declines in inventory levels. The American Petroleum Institute reported that U.S. stockpiles fell by 1.8 million barrels.
This decline was much higher than expected. The Wall Street Journal reported Tuesday that U.S. crude was expected to fall by just 500,000 barrels. The larger drop in inventory levels lead to an increase in crude-oil futures, which made a 1.1 percent gain.
During trading on the European market, crude oil had seen higher gains, but the European Central Bank's announcement that it would leave interest rates unchanged lead to a decline in all trading. Light crude oil, one of the more favorable sources for gasoline production, ended the day at $85.25 a barrel.
The price of oil is down 14 percent for the year, which has helped reduce energy costs for businesses. Much of the decrease is due to lower demand in Europe a result of continued deficit problems, but higher U.S. inventory levels also contributed. Oil stockpiles are at their highest level in 22 years.
Greater production throughout North America has helped the U.S. increase its overall inventory levels. The Canadian Association of Petroleum Producers stated recently that Canadian crude oil production is expected to double by 2030.
