NEW YORK (Dow Jones)--Crude oil futures fell Wednesday as a rise in oil product stocks overturned earlier gains prompted by a draw in crude inventories. Light, sweet crude for January delivery recently traded 93 cents, or 1.3%, lower at $71.69 a barrel on the New York Mercantile Exchange, the lowest level since Oct. 9. Brent crude on the ICE futures exchange traded $1.64, or 2.2%, lower at $73.55 a barrel. Data from the U.S. Energy Information Administration Wednesday proved a "mixed picture," said Mike Zarembski, senior commodities analyst with OptionsXpress in Chicago. A larger-than-expected increase in oil product inventories was "disappointing," noted Zarembski. Gasoline stocks climbed 2.253 million barrels, compared with forecasts for a gain of 1.5 million barrels. Distillate stocks, a category that includes heating oil and diesel, rose 1.619 million barrels, compared with expectations of a 500,000-barrel decline. Both gasoline and heating oil prices dropped after the data. Front-month January reformulated gasoline blendstock, or RBOB, recently traded 4.29 cents, or 2.3%, lower at $1.8817 a gallon. January heating oil recently traded 4.92 cents, or 2.5%, lower at $1.9417 a gallon. "I'd say, just solely on the inventory report, crude would probably be following products lower," said Brad Samples, analyst with Summit Energy, in Louisville, Ky. The fall in oil product prices helped reverse gains the crude market had made after data showed a 3.823 million-barrel draw in crude stocks, exceeding analyst forecasts for a 600,000-barrel build. Although crude stocks fell, analysts and traders noted that refineries had increased runs at a time when oil consumption levels have not yet recovered. Oil market participants have been banking on a rise in demand to clear the overhang of stocks. "Refineries are making more," Tony Rosado, broker with GA Global Markets in New York, said of the product stock build. U.S. refinery processing rates rose from 79.7% to 81.1% of total capacity. Total products supplied--used as a proxy for demand--fell 3% year-on-year over the last four weeks to average 18.5 million barrels per day. The EIA also reported another big rise in inventories at Cushing, the delivery point for the WTI contract. These were up 2.5 million barrels to 33.4 million barrels, and are approaching record levels. Oil had also been supported after the data's release by a weakening in the dollar and stronger equity markets. But the dollar has since gained some ground against the euro while equity markets have also slipped.

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