Energy Information Administration released its report on crude oil inventories on Wednesday according to which crude oil supplies gained 7.1 million barrels for the week ended March 23^rd, 2012. The figures reported by EIA surpassed the analysts’ expectations with huge gap who were expecting an increase of 2.75 million barrels of the respective week.

EIA reported decrease of 3.5 million barrels in gasoline inventories as compared to analysts’ expected decrease of 1.5 million barrels for the week. Distillates stockpiles which include diesel and heating oil declined 700,000 barrels while analysts expected the decline of 1 million barrels for the week.

Crude oil futures contract for May delivery fell $1.92 to settle at $105.41 per barrel on the New York Mercantile Exchange.

EIA also indicated that some countries may release their oil reserves while Iran may also negotiate with UN and other global bodies regarding its nuclear program. France’s budget minster also said that France is planning to consult International Energy Agency along with United States and United Kingdom to talk about releasing of oil reserves. The inventories data and news regarding global oil scenario made investors to sell their oil holdings.

Analysts were of the opinion that if talks on release of global oil reserves succeed, a further decline would be seen in oil prices.

Among other energy commodities, gasoline futures contract for April delivery declined $0.01 to $3.40 per gallon while heating oil futures for the same month also fell $0.01 to $3.21 per gallon.

Natural gas futures contract for April delivery slipped $0.02 to settle at $2.19 per million British thermal units.