Oil prices were little changed Wednesday after a government report showed an increase in crude supplies that exceeded analysts' expectations.
The March light crude contract was down prices fell 15 cents to $41.43 a barrel on the New York Mercantile Exchange. Oil was down 18 cents just prior to the report's release.
In its weekly inventory report, the Energy Information Administration said crude stocks increased by 6.2 million barrels in the week ended Jan. 26. Analysts were looking for an increase of 3.4 million barrels of crude oil, according to a consensus estimate of industry analysts surveyed by Platts, a global energy information provider.
Stockpiles of gasoline decreased by 100,000 barrels, while analysts were looking for an increase of 1.8 million barrels.
Distillates, used to make heating oil and diesel fuel, fell by 1 million barrels. Analysts were looking for a decrease of 1.8 million barrels.
Oil's supply-demand picture remains weak, with a large stock build in the United States and extremely weak demand in China, the world's second-largest energy consumer.
Oil supplies in the U.S. have gone up significantly in the past several weeks. Last week, the Energy Department reported supplies of crude increased by 6.1 million barrels in the week ended Jan. 16, when analysts had been expecting an increase of only 1.9 million barrels.
Crude prices have dropped more than $100 from a record peak above $147 a barrel in July last year, sunk by plummeting demand amid the recession.
Demand is dependent on the ongoing economic uncertainty and whether the Organization of the Petroleum Exporting Countries, which produces about 40% of the world's oil, will meet its pledge to cut output by 2.2 million barrels a day this month.
Economic data: This week's U.S. economic reports have been mixed, with positive housing data tempered by devastating layoff announcements.
Sales of existing homes in December rose an unexpected 6.5% for the month, and the index of leading economic indicators from the Conference Board fell a less-than-expected 0.3%.
However, Monday and Tuesday were bleak days for the labor market as employers, including Home Depot, Caterpillar and Sprint, announced more than 80,000 job cuts.
Weather: Cold weather in the U.S. has helped prices move up from lows earlier in January of $32.70 a barrel. A cyclone off western Australia has shut down nearly half the country's oil output, but some operators said production was likely to resume Wednesday as the storm weakens.
