Oil falls on reports of growing supplies

September 21, 2011 - 10:20 AM

NEW YORK (AP) — Oil is lower ahead of a government report that's expected to show growing supplies in the U.S.

Benchmark crude fell 53 cents to $86.39 per barrel in New York.

Oil fell early Wednesday after the American Petroleum Institute said its survey showed that U.S. inventories of grew by 2.6 million barrels of oil and by 62,000 barrels of gasoline last week. The Energy Department's Energy Information Administration is expected to release official supply figures later in the day.

At the pump, gasoline prices dropped by a penny to a national average of $3.57 per gallon.