Oil falls as U.S. energy stocks rise

Oil fell after U.S. distillate inventories, including heating oil, rose above expectations and crude stocks also grew last week.

Oil hit a record of $126.98 on Tuesday, partly on a rally in the distillate market. However, prices plunged Wednesday, immediately after the U.S. Energy Information Administration reported distillate stocks, which include heating oil, increased by 1.4 million barrels, against predictions for a 750,000 barrel gain.

Elsewhere in the report, crude oil inventories in the United States rose by 200,000 barrels in the week to May 9 and gasoline stocks fell by 1.7 million barrels.

At 3:54 p.m., New York-traded West Texas Intermediate crude for June delivery was down $1.12 cents at $124.68 a barrel. In London, Brent crude for June delivery was down $1.60 at $122.50.