NEW YORK (CNN/Money) - U.S. crude oil supplies climbed for the ninth straight week, the government reported Wednesday, but came in well below estimates -- while inventories of fuel used for heating snapped a nine-week losing streak, easing winter fuel supply concerns.

Crude inventories rose by 100,000 barrels in the week ended Nov. 19 to 292.4 million barrels, the Energy Information Administration reported. That's well below the 700,000 barrel increase analysts expected, according to Reuters.

Distillate supplies, the oil used for heating fuel, rose by 1 million barrels to 115.6 million. Analysts expected heating fuel supplies to post an increase of 400,000 barrels.

"This is evidence that we really don't have to worry about shortages," said Fadel Gheit, an oil analyst at Oppenheimer, noting that gasoline supplies posted a greater-than-expected jump, along with crude and distillates.

"Speculators have no reason to scare people with shortages. And you can see this because futures are dropping and prices will continue to drop," said Gheit.

But even though crude prices dropped more than a dollar following the 10:30 release, the U.S. light crude contract gained back ground. In early afternoon trading, the January light crude contract rose 21 cents to $49.15 a barrel. The contract crossed $50 Tuesday.

Distillate stocks are still 14 percent below last year. Heating oil stocks fell by 200,000 barrels to 48.9 million barrels, a 16 percent year-on-year deficit, the Energy Information Administration (EIA) said.

Major consuming nations have experienced mild winter weather and a production surge by the OPEC cartel has helped rebuild crude inventories; but U.S. distillate demand is already running nearly 8 percent above last year due to strong trucking and manufacturing activity.

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A cold spell would cause a surge in domestic heating usage in the heavy consuming Northeast.

"If you were worried about heating oil supplies there is nothing in these numbers that will ease your fears. If we get cold weather in the U.S. Northeast this market could really take off," Phil Flynn, an oil analyst with Alaron Trading, told Reuters.

Total motor gasoline inventories increased by 1.8 million barrels last week, and are in the upper half of the average range.

"The rise in gasoline stocks shows that the demand for petroleum products has been more elastic than many analysts have given it credit for," said Charles Komanoff, director of the energy consulting firm Komanoff Energy Associates. He added that gas demand has fallen in response to the last six months of high prices, even though analysts doubted consumers would change their consumption habits.