Oil pares gains after supply increase, Obama speech

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2008/WORLD/meast/06/22/oil.summit/art.saudi.afp.gi.jpg caption="President Barack Obama wants to open new areas to offshore drilling."]

Annalyn Censky
CNNMoney.com

Oil prices were on track to post a new 2010 high Wednesday morning, but then fell after a higher-than-expected inventory report and the news that President Obama wants to open new areas to offshore drilling.

What prices are doing: Crude oil prices for May delivery rose $1.03 to $83.40 a barrel - higher than the 2010 peak of $83.18 - in morning trading.

But then the Department of Energy released a report showing higher-than-expected crude and gasoline supplies, and the market pared back earlier gains. Just after Obama's speech at 11:45 a.m. ET, prices were up only 57 cents to $82.92 a barrel.

Keep Reading...