Oil is dropping below $102 a barrel after a government report showed a larger-than-expected increase in US crude supplies.
The price of benchmark US oil is down $2.55, or 2.4 percent, to $101.46 a barrel in late morning trading on the New York Mercantile Exchange. In London, Brent crude fell by $2.17 to $122.69 per barrel at the ICE Futures exchange.
The Energy Department's Energy Information Administration said crude supplies grew by 9 million barrels, or 2.5 percent, to 362.4
million barrels, which is 1.3 percent above year-ago levels.
Oil is also falling with US stock markets. The Dow Jones industrial average is down more than 1 percent a day after the Federal Reserve indicated that further measures to boost economic growth were less likely. - Sapa-AP