Oil down with Cushing inventory nearly flat

Oil Prices
Posted at 11:56 AM, Dec 05, 2012
and last updated 2012-12-05 07:02:26-05

Tallahasse, Fla (AP) -- Oil prices are down Wednesday after the government reported that stocks of crude are still running much higher than usual for this time of year.

Benchmark crude fell 66 cents to $87.84 in late-morning trading.

Oil prices were higher earlier in the day. But the weekly report from the Energy Information Administration shows that inventory has barely moved at the key oil hub in Cushing, Okla. That suggests that most refiners have all the supply they need for now, driving prices lower.

Nationally, inventories declined more than analysts expected, but supplies remain well above average.

AAA says gasoline prices at the pump are down slightly to a national average of $3.38 per gallon.

Natural gas prices are up 10 cents to $3.64 per 1,000 cubic feet.