Oil falls further after EIA supply data ( CLZ2 RBX2 HOX2 ) (by Myra P. Saefong)

SAN FRANCISCO (MarketWatch) -- Oil futures fell further Wednesday, to drop below $86 a barrel after the U.S. Energy Information Administration reported a bigger-than-expected rise in crude supplies for the week ended Oct. 19. Crude supplies rose by 5.9 million barrels. Analysts polled by Platts expected a 1.7 million-barrel increase in crude-oil supplies for last week. Motor gasoline supplies added 1.4 million barrels, while distillate stocks fell 600,000 barrels, the EIA report said. Analysts forecasted a decline of 1 million barrels for gasoline inventories and a fall of 1.5 million barrels in distillate supplies. Following the latest data, December crude (clz2) traded at $85.70 a barrel, down 97 cents, or 1.1%. It was trading around $86.52 shortly before the data release. The American Petroleum Institute late Tuesday reported a 313,000-barrel rise in crude supplies.