Graphics shows the price of light, sweet crude oil in the past 12 months. The price of light, sweet crude oil for May delivery fell 1.21 U.S. dollars per barrel to settle at 52.77 U.S.dollars per barrel on the New York Mercantile Exchange, on March 25, 2009. (Xinhua/Cui Ying) Photo Gallery>>>

   NEW YORK, March 25 (Xinhua) -- Crude oil gave up strong rally and closed more than 2 percent lower on Wednesday after a government report showed that U.S. crude stockpiles surprisingly surged to a 16-year high.

    Light, sweet crude for May delivery fell 1.21 U.S. dollars to settle at 52.77 dollars a barrel on the New York Mercantile Exchange.

    Crude oil has been gaining strongly recently as dollar weakened against other major currencies and U.S. stocks headed higher. Crude futures traded at New York and London have seen prices hitting the highest settlement record since November 28, 2008.

    Crude oil initially traded higher in early session, rising to as high as 554.18 dollars a barrel. But the rally faded after a report showed a larger-than-expected build up in crude supplies.

    The U.S. Energy Department Energy Information Administration (EIA) reported on Wednesday that, during the week ended March 20, crude supply jumped 3.3 million barrels to 356.6 million barrels, an increase far more than analysts had expected. Current crude inventory is 15.6 percent higher than a year ago and is the highest level since July 23, 1993.

    In London, Brent crude for May delivery fell 1.68 dollars to 51.82 dollars a barrel on the ICE Futures Exchange.