COLUMBUS, Ohio — Oil prices rose in volatile trading Thursday after the government reported an enormous buildup of oil and gasoline at U.S. storage facilities, another manifestation of how badly the deteriorating economy has cut into energy demand.
With the latest report from the Department of Energy, crude inventory levels have risen by 14 million barrels since the week ended Jan. 2, pushing operational capacity at key storage sites to the limit.
Prices tumbled 7 percent before a late-day rally, with light, sweet crude for March delivery settling up 12 cents at $43.67 on the New York Mercantile Exchange.
Crude fell early in the day after the Commerce Department reported that new-home construction plunged to an all- time low in December. There was also more evidence that export-driven economies in Asia are being hit hard by the recession. Oil inventory data pushed prices even lower before oil prices and the stock market rallied.
Prices at the pump edged up again overnight as refiners cut back production in reaction to falling demand.
