The Energy Information Administration reported decline of 500,000 barrels in crude oil supplies for the week ending September 28^th, 2012. Analysts were expecting increase of 1.5 million barrels in the crude oil inventories for the respective week. Moreover analysts from BNP Paribas reported that oil production was up by 12 percent as compared to last year which also depicts highest production levels since the year 1996.

The EIA also reported increase of 100,000 barrels in gasoline inventories while analysts on average expected no change in gasoline inventories. Distillates stockpiles which include diesel and heating oil fell 3.7 million barrels as compared to analyst expected decrease of 400,000 barrels for the week.

Crude oil futures contract for November delivery declined 4.1 percent or $3.75 to settle at $88.14 per barrel on the New York Mercantile Exchange.