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U.S. crude oil supplies took a larger than anticipated drop and as a result oil prices rose by more than $5 US a barrel on Wednesday.


Crude oil supplies, according to the U.S. Energy Department's Energy Information Administration ,dropped last week by 4.6 million barrels. This drop surpassed the 1.4 million-barrel drop forecast by analysts surveyed by energy research firm Platts.

Light, sweet crude went up $5.62 to $136.93 US a barrel in afternoon trading on the New York Mercantile Exchange, in response.


The U.S. dollar, which traded lower against the euro, the Canadian dollar and the British pound, is also being blamed for the price spike. When the U.S. greenback weakens, investors buy oil as an inflation hedge and the price of crude tends to move higher

June 6 saw crude have its biggest one-day gain in the history of the NYMEX. Crude oil futures soared $10.75 US a barrel to settle at $138.54 US. Earlier in the day it had traded as high as $139.12 US earlier in the day.

Gasoline prices also gained ground. GasBuddy.com, monitors North American pump prices and the average price for a litre of gasoline in Canada today was 137.188 cents, compared to 136.7 cents on Tuesday.

The price for a gallon of gasoline, in the United States, rose to $4.062 US from $4.059 US a day earlier.