Oil sinks on surprise jump in gas inventories

NEW YORK (CNNMoney.com) -- NEW YORK (CNN/Money) -- Oil prices slipped Thursday after a government report revealed a surprising jump in gasoline inventories.

U.S. light sweet crude for October delivery fell 35 cents to $67.15 a barrel. Just before the Energy Information Administration released its report, the contract was up 10 cents at $67.60.

In the previous session, crude prices slipped $1.10 to settle at $67.50, its lowest closing price since April 7.

Total motor gasoline inventories rose by 700,000 barrels last week, putting them above the upper end of the average range. Gasoline inventories were expected to fall 800,000 barrels last week, according to a Reuters survey.

Crude oil inventories fell 2.2 million barrels last week, versus forecasts for a decline of 1.3 million barrels according to Reuters. At 330.6 million barrels, U.S. crude oil inventories remain well above the upper end of the average range for this time of year.

Distillate fuel inventories rose by 3.1 million barrels last week, and remain above the upper end of the average range for this time of year. The news service reported that distillates were expected to rise by 1.3 million barrels.

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