NEW YORK (AP) — Oil prices are higher following a government report that U.S. supplies unexpectedly dropped last week.

The Energy Information Administration said Wednesday that oil supplies fell by 1.2 million barrels. Analysts expected supplies to grow by 2.1 million barrels.

The drop in supply doesn't mean Americans are using more gasoline and other fuels. It mainly reflects a decline in crude oil imports to refineries.

Benchmark West Texas Intermediate crude rose by 33 cents to $106.540 per barrel in New York. Brent crude fell by 20 cents to $123.92 per barrel in London.

Retail gasoline prices jumped by nearly 2 cents to a national average of $3.864 per gallon.