Oil prices drop

June 26, 2008


Oil futures fell sharply Wednesday after the Energy Department said the nation's supplies of fuel and oil were larger than expected last week - evidence that the soaring price for gasoline has sliced into Americans' demand for fuel. The Federal Reserve's decision to hold interest rates steady had little effect on trading.

At the pump, gasoline prices inched lower but remain entrenched above $4 a gallon.

In its weekly inventory report, the department's Energy Information Administration said crude oil supplies rose slightly last week. Analysts surveyed by research firm Platts had expected a decline of 1.7 million barrels.

Gasoline supplies fell less than expected, and demand fell 2.1 percent.


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