Nation’s oil supply drops to 28-year low

? The nation’s oil supply dropped another 4.5 million barrels last week, leaving inventories the lowest since 1975 and below what the industry considers necessary for smooth operation.

The Energy Department said Wednesday crude stocks were at 269.8 million barrels, just below the lower end of an inventory range needed to assure enough oil is available for efficient refinery operation.

While inventories are low, “it doesn’t necessarily mean there will be shortages. … Refineries are still running,” said Ron Panting, an economist for the American Petroleum Institute.

He said API’s statistics show slightly more oil in inventory — 271.6 million barrels — than the number released Wednesday by the government’s Energy Information Administration.

War worries have caused crude prices to soar. The price of light sweet crude rose to a 26-month high Tuesday on the New York Mercantile Exchange to $35.44 a barrel, declining only slightly Wednesday.