Oil prices rise on surprise supply drop

Oil prices are climbing on an unexpected drop in U.S. crude supplies.

Benchmark crude rose 75 cents to $89.28 per barrel on Wednesday in New York. Brent crude rose 39 cents to $111.54 in London.

The government says that U.S. supplies dropped by 4.7 million barrels last week. Analysts expected supplies to grow. The Energy Information Administration report says the drop in supply happened because oil imports fell. Demand declined for both oil and gasoline last week.

At the pump, gasoline prices rose 1.5 cents on Wednesday to a national average of $3.474 per gallon.

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