Oil prices rise on surprise supply drop
NEW YORK - The price of oil is climbing after the government said supplies have dropped more than analysts expected.
Benchmark U.S. crude rose 76 cents to $88.82 per barrel in New York on Wednesday, while Brent crude added $1.11 to $106.03 per barrel in London.
Prices rose after the Energy Information Administration said U.S. oil stockpiles fell by a surprising 6.5 million barrels last week - four times what analysts expected. Gasoline supplies also dropped unexpectedly last week, according to the EIA.
Government reports also said that construction spending rose in June and U.S. manufacturing activity fell in July.
Meanwhile, retail gasoline prices jumped 2.1 cents to a national average of $3.521 per gallon.