Oil futures closed lower today after the Energy Information Administration (EIA) surprised the markets with a report that inventories jumped by 7 million barrels last week. Analysts surveyed by Dow Jones were expecting an increase of 2.6 million barrels.

Light sweet crude for March delivery fell $1.27 to settle at $87.14 on the NYMEX on volume of 259,716. High prices and concerns regarding the economy are all hurting demand for oil. A warm winter in the Northeast and a slowdown in manufacturing sector has also reduced the demand for oil.