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Why oil will go even lower

VIDEO1:1101:11
Why gas might get a lot cheaper

New data showing a surge in U.S. gasoline and diesel fuel supplies spell more trouble for oil prices but is good news for consumers.

The Energy Information Administration on Wednesday reported that U.S. gasoline stocks rose by 8.1 million barrels last week, compared with expectations for a 3.4 million barrel build. Distillate stocks, including diesel fuel and heating oil, rose by 11.2 million barrels, more than five times the amount expected.

Gasoline futures for February slumped more than 2 percent on the Nymex to $1.32 per gallon, but West Texas Intermediate oil futures rose slightly to $48.62 per barrel even though the large supply of refined products means lower demand for oil in coming weeks.