Crude oil fell $2.50 per barrel Thursday as stockpiles increased and the National Weather Service predicted a mild winter in the Northeast, the nation’s largest market for heating oil.

Oil for December delivery fell to $56.25 on the New York Mercantile Exchange, a 28.3% decline from the July peak of $78.40.

The U.S. Energy Department said crude oil supplies increased 1.2 million barrels last week to 336 million barrels, or about 12% higher than the average for the week.

Gasoline supplies fell 3.8 million barrels to 200.3 million for the week ended Nov. 10. Distillates, including heating oil and diesel, fell 3.6 million barrels, suggesting a future rebound in prices if crude oil supplies decline.

The Energy Information Agency said that efforts by Organization of Petroleum Exporting Countries (OPEC) to cut production by 1.2 million barrels per day hasn’t boosted world oil.

Oil stocks were generally lower on the news.

ExxonMobil (nyse: XOM – news – people ) closed at $72.67, down $2.13, or 2.9%.

Chevron (nyse: CVX – news – people ) closed at $68.55, down $1.40, or 2%.

BP (nyse: BP – news – people ) closed at $66.62, down $1.02, or 1.5%.

Valero (nyse: VLO – news – people ) closed at $52.49, down $1.76, or 3.2%.

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