Oil seesaws following inventory report - $64 Dollar Mark

Crude prices straddle $64 mark on surprising increase in distillate stocks, but stay in positive territory.

NEW YORK (CNN/Money) -- Oil prices zigzagged Wednesday after a government report revealed a bigger-than-forecast drawdown in crude stocks but a larger-than-expected jump in distillate inventories.

U.S. light sweet crude for October delivery was 30 cents higher at $64.06 a barrel.

Just before the Energy Information Administration released its report, the contract was up 40 cents at $64.16. It tumbled below $64 right after the figures were released, then rebounded as high as $64.42 before falling back down.

In the previous session, crude prices fell $1.85 to $63.76 a barrel, the lowest level since March 22, with the seven-day drop the longest losing streak in nearly three years.

Distillate fuel inventories rose by 4.7 million barrels last week, and well above the upper end of the average range for this time of year. Reuters reported that distillates - used for heating - were expected to climb 1.7 million barrels.

Crude oil inventories climbed by 2.9 million barrels, versus forecasts for a decline of 1.9 million barrels according to Reuters. At 327.7 million barrels, U.S. crude oil inventories remain well above the upper end of the average range for this time of year.

Total motor gasoline inventories rose by 100,00 barrels last week, putting them just above the upper end of the average range. Gasoline inventories were expected to remain unchanged last week, according to Reuters.