Crude oil closed at $94.53 a barrel after hitting a record $94.74 barrel during trading in New York following an Energy Department report that showed that U.S. inventories fell to a two-year low.

Stockpiles dropped 3.89 million barrels to 312.7 million barrels last week, the department said. It was the lowest since October 2005.

"We've lost a lot of oil at a time when we should be building supply for winter," said Phil Flynn, a senior trader at Alaron Trading Corp. in Chicago.