Oil tumbles on surge in crude supplies

NEW YORK (CNNMoney.com) -- Oil prices turned lower Wednesday after a government report said crude inventories shot up much more than expected in the past week.

U.S. light sweet crude for September delivery fell $1.60 to $112.93 a barrel. Just before the Energy Information Administration released its report, oil was up $2.28 at $116.81.

Crude oil inventories climbed by 9.4 million barrels in the week ended Aug. 15. Analysts forecast a much more modest build of 1.7 million barrels according to a survey from Platts, an energy research firm.

The build in crude stockpiles was "way more than what the market was looking for and as a result we have come off our highs," said Andrew Lebow, an energy analyst at MF Global in New York.

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