Oil prices climb on U.S. supply drop

Oil prices are rising after the government reported that U.S. crude supplies fell unexpectedly last week.

The Energy Information Administration says crude stockpiles fell slightly by 100,000 barrels to 305.8 million barrels for the week ending Aug. 22. That compared with the 1.5 million-barrel increase forecast by analysts surveyed by Platts, an energy research firm.

The EIA also said gasoline stocks fell less than expected last week, dropping by 1.2 million barrels compared with the 2.8 million barrels analysts expected.

Supplies of distillates, which includes heating oil and diesel, were flat at 132.1 million barrels.

Light, sweet crude for October delivery rose $1.88 to settle at $118.15 a barrel on the New York Mercantile Exchange.