Oil rebounds from 2 days of losses

The Energy Information Administration said the nation’s gasoline supplies dropped last week by 7 million barrels _ more than five times what analysts expected. Supplies of distillate fuels,which include diesel and jet fuel,also unexpectedly declined by 2.7 million barrels.

Shrinking supplies of gasoline,diesel and other refined fuels could boost demand for crude oil and push prices higher. But analyst and trader Stephen Schork pointed out that the drop is partially due to a temporary shutdown at Sunoco’s Marcus Hook refinery in Pennsylvania.

The EIA report also noted that crude oil supplies increased by 1.6 million barrels last week,and wholesale gasoline demand fell by 1.6 percent when compared with the same period last year.

The decline in gasoline demand adds to what some economists say is an overall slowdown in American driving in the face of rising gasoline prices. MasterCard SpendingPulse,which tracks spending at 140,000 service stations around the country,said late Tuesday that motorists have bought less gas for six weeks in a row.

Meanwhile,gasoline pump prices continued to climb. The national average added nearly 2 cents on Wednesday,to hit $3.808 per gallon,according to AAA,Wright Express and Oil Price Information Service. A gallon of regular costs 25 cents more than a month ago and is 95 cents higher than last year.

In other Nymex trading for May contracts,heating oil added 3 cents at $3.2002 per gallon and gasoline futures gained 6 cents at $3.260 a gallon. Natural gas futures added 6 cents at $4.156 per 1,000 cubic feet.

In London,Brent crude rose $1.74 to $122.17 per barrel on the ICE Futures exchange.