Oil futures tumbled after the U.S. Department of Energy said U.S. stockpiles last week surged the most since 2008 and domestic crude output climbed to its highest level in 12 years, Bloomberg reported.

Futures fell to a six-week low as inventories rose by more than 9 million barrels to 362.4 million barrels last week, the most since June. Production gained 2.9 percent to 6.05 million barrels a day. Oil prices also decreased after the Federal Reserve signaled it may refrain from more monetary stimulus.

“U.S. inventories are obviously more than ample,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $1.3 billion in futures contracts. “U.S. production keeps increasing. This proves that when prices rise high enough, producers are going to find new ways to bring supply to market.”

Crude oil for May delivery dropped $2.53, or 2.4 percent, to $101.48 a barrel at 1:35 p.m. on the New York Mercantile Exchange. Futures touched $101.08, the lowest level since Feb. 16. The contract traded at $102.78 a barrel before release of the inventory report this morning. Prices have risen 2.7 percent this year.

U.S. crude output last week was at the highest level since December 1999. Domestic production averaged over four weeks rose 5.2 percent from a year earlier, the department said.