Oil Prices Drop Below $102

Crude oil futures fell $2.54 per barrel on the New York Mercantile Exchange on Wednesday to close at a seven-week low of $101.47.

Analysts say the decline was triggered by a report from the U.S. Energy Information Administration that America's crude inventories last week unexpectedly surged to the highest level since last June because of rising production and declining demand.

The EIA also reports that U.S. crude output rose 3% to 6.1 million barrels per day, the highest level in 12 years. But the agency says much of the increase reflects a change in the way the data are calculated.

Americans are paying an average of $3.93 per gallon for gasoline, up only 2 cents from a week ago after climbing about 40 cents in the previous six weeks.