NEW YORK (CNN/Money) - U.S. stockpiles of crude oil rose by 1.1 million barrels last week, the government reported Wednesday, coming in at half of what analysts had expected and sending futures to a new record high.

Following the report, U.S. crude for November delivery briefly traded flat, then jumped to a record $51.80 a barrel before easing to $51.57, up 48 cents on the day.

"There are so many new entrants in the market, that some of these hedge funds and other players may take a while to digest the news," said Richard Mueller, senior oil analyst with Boston-based Energy Security Analysis.

Inventories of crude oil climbed to 274 million barrels in the week ended Oct. 1 from 272.9 million the previous week as shipments delayed by Hurricane Ivan arrived at their ports, the Energy Information Administration reported.

Analysts expected inventories to climb by 2.2 million barrels, according to Reuters.

Stockpiles of distillate fuel, which is used for heating oil in much of the United States, fell by 2.1 million barrels to 123.4 million barrels, according to the EIA. That was 1.2 million more than analysts had expected.

Oil prices have surged as damage from Ivan continues to hamper production in the Gulf of Mexico and speculators buy crude futures in anticipation of supply shortages before the U.S. winter heating season.

The limited Gulf production is "definitely a contribution to the prices," said Mueller, adding that the damage from Ivan knocked about 500,000 barrels a day out of production and it may take weeks longer before it returns.