Oil futures fell Wednesday after a larger-than-expected increase in U.S. crude supplies, which kept inventories at their highest level in 80 years. Light, sweet crude for March delivery dropped $1.78, or 3.9%, to $44.45 a barrel on the New York Mercantile Exchange. That was crude’s lowest settlement since March 11, 2009. Brent crude for delivery the same month fell $1.13, or 2.3%, to $48.47 a barrel on the ICE Futures Exchange. That was Brent’s largest one-day percentage decline in a more than week.

The U.S. Energy Information Administration said earlier Wednesday U.S. oil supplies rose by 8.9 million barrels in the week ended Jan. 23. Analysts polled by Platts had expected an increase around 3.5 million barrels. At 406.7 million barrels, U.S. inventories are at their highest since 1924, just as they were the last reporting week. 

Gasoline inventories dropped by 2.6 million barrels, whereas distillates supplies dropped by 3.9 million barrels, the EIA said. The analysts surveyed by Platts had expected gasoline stockpiles up 830,000 barrels, and distillate stockpiles down 580,000 barrels. Refineries operated at 88% of capacity that week, and gasoline production decreased to 9.2 million barrels a day. Retail gasoline rose Tuesday for the first time in more than 120 days, averaging $2.038 a gallon on Wednesday, the same as the day before and fractionally higher than Monday.

Oil prices have fallen nearly 60% since the summer as the market struggles with a global supply glut and weakening demand. Several investment banks cut their price forecast for crude, with Barclays one of the latest to do so. The bank further cut its outlook for both Brent and Nymex-traded crude, saying it expects WTI to average $42 a barrel in 2015, down from its Dec. 1 forecast of $66. For Brent, the bank now expects to see $44 in 2015, down from $72 predicted earlier. Barclays said it expects Brent and WTI to rise to $60 and $57 a barrel in 2016, respectively. “Fundamentals are set to weaken in the first half of the year, dragging prices lower than previously forecast. We assume that OPEC will maintain its position, non-OPEC supply growth will stay firmly in positive territory, and oil consumption will be slow to respond to lower prices,” the analysts said in the report.