Energy Information Administration released its inventories report on Wednesday which reported gain of 2.1 million barrels in crude oil inventories for the week ending May 11^th, 2012. Analysts were expecting the increase of 1.5 million barrels in crude oil supplies.

EIA also reported gasoline stockpiles which fell 2.8 million barrels while analysts expected decrease of 480,000 barrels for the week. Distillates inventories which include heating oil and diesel decreased by 1 million barrels as compared to expected increase of 120,000 barrels for the respective week. According to analysts, gasoline and jet fuel production has been kept limited which has resulted in to higher retail prices and transportation costs.

Other than surprise increase in crude oil inventories, situation in the euro zone regarding Greece political crisis also kept the oil under pressure. Crude oil futures contract for June delivery fell 1.2 percent or $1.17 to settle at $92.81 per barrel on the New York Mercantile Exchange.

The ICE dollar index also gained to 81.360 on Wednesday as compared to 81.286 on Thursday’s North American trading session making its longest rally in last 20 years. Higher dollar is always negatively correlated with commodities.

Among other energy commodities, gasoline futures contract for June delivery fell $0.02 to $2.92 per gallon while heating oil futures contract for the same month fell 1.2 percent or $0.04 to settle at $2.90 per gallon.

Natural gas futures for the month of June gained 4.7 percent or $0.12 to settle at $2.62 per million British thermal units.