Crude oil fell the most in a month after a government report showed an unexpected increase in U.S. gasoline stockpiles and crude supplies rose to a two-month high.

Gasoline inventories climbed 1.62 million barrels last week, the Energy
Department said. A 1 million-barrel decline was forecast, according to
a Bloomberg News survey. Crude inventories rose as imports advanced the
first time in five weeks. Oil also dropped as the dollar gained against
the euro.

“The gasoline number was a big surprise and makes people less
optimistic about the economy and demand,” said Sean Brodrick, natural
resource analyst with Weiss Research in Jupiter, Florida. “You are also
seeing strength in the dollar, further weakening the oil market.”

Crude oil for December delivery fell $2.09, or 2.6 percent, to end the
session at $77.46 a barrel at 2:51 p.m. on the New York Mercantile
Exchange, the lowest settlement since Oct. 14. It was the biggest
one-day drop since Sept. 24. Prices have gained 74 percent from the end
of 2008 and reached a one-year high of $82 a barrel on Oct. 21.

Gasoline for November delivery declined 8.41 cents, or 4.1 percent, to
$1.9864 a gallon in New York, the lowest settlement since Oct. 16. It
was the biggest decline since Sept. 23.

“This is a correction, but it doesn’t mean we won’t move back,” said
Edward Morse, head of economic research at LCM Commodities LLC in New
York. “There’s nothing fundamental in the move above $75 or the move
below $82.”

Consumption Decline

Fuel demand dropped 0.8 percent to an average of 18.5 million barrels a
day last week, the report showed. Gasoline consumption fell 1 percent
to 8.86 million barrels a day.

“We are really just not seeing demand in the U.S. pick up,” Brian
Youngberg, an analyst at Edward Jones in Des Peres, Missouri, said in
an interview with Bloomberg Television. “U.S. demand for oil probably
peaked in 2007. It will improve, but not to those levels.”

Refineries operated at 81.8 percent of capacity, up 0.7 percentage
point from the previous week, the report showed. Refiners produced 8.83
million barrels of gasoline a day, up 4.5 percent from the prior week.

“We continue to see evidence of weak demand and excess supply,” said
Antoine Halff, head of energy research at Newedge USA LLC in New York.
“The gasoline number reflects both a lack of demand and an increase in
refinery output.”

Inventories of crude oil rose 778,000 barrels to 339.9 million last
week, the report showed. The gain left supplies 9.1 percent higher than
the five-year average for the period. A 1.91 million-barrel increase
was forecast, according to the median of 16 estimates by analysts in
the Bloomberg News survey.

Imports Gain

Imports of crude oil increased 2.2 percent to 8.89 million barrels a
day last week, the report showed. Fuel imports climbed 6.3 percent to
2.54 million barrels a day.

Supplies of distillate fuel, a category that includes heating oil and
diesel, declined 2.13 million barrels to 167.8 million. Inventories
were 29 percent higher than the five-year average for the week, the
department said. Stockpiles in the week ended Oct. 2 were at the
highest level since January 1983.

Heating oil for November delivery declined 5.82 cents, or 2.8 percent,
to $1.9969 a gallon, the lowest settlement since Oct. 14.

“We will be paying attention to stocks, the dollar and any economic
numbers in the days ahead,” said Carl Larry, president of Oil Outlooks
& Opinions LLC, a Houston-based energy adviser.

The U.S. currency climbed 0.6 percent to $1.4722 per euro from $1.4804
yesterday. A stronger dollar reduces the appeal of commodities to
investors looking for an inflation hedge.

The Standard & Poor’s 500 Index retreated 1.6 percent to 1,046.04
at 3:32 p.m. in New York. The MSCI World Index fell for a seventh
straight day, the longest losing streak since February.

Raising Questions

“The stock market appears to have hit a ceiling and that raises
questions about whether the oil market has as well,” said Michael
Lynch, president of Strategic Energy & Economic Research in
Winchester, Massachusetts. “If the stock market drops, oil is
vulnerable because it’s risen more than is justified by the
fundamentals.”

Brent crude oil for December settlement dropped $2.06, or 2.6 percent,
to end the session at $75.86 a barrel on the London-based ICE Futures
Europe exchange.

Oil volume in electronic trading on the Nymex was 484,520 contracts as
of 3:07 p.m. in New York. Volume totaled 517,692 contracts yesterday,
8.5 percent lower than the average over the past three months. Open
interest was 1.22 million contracts. The exchange has a
one-business-day delay in reporting open interest and full volume data.

Source: Bloomberg

Search to find what you want

• Crude oil inventories rise by 2.3 million barrels

    Crude inventories rose last week, while gasoline supplies decreased, the government said Wednesday. Crude inventories rose by 2.3 million barrels, or 0.7 percent, to 329 million barrels, which is 6.1 percent below year-ago levels, according to the Energy Department’s Energy Information Administration’s weekly report. Analysts expected a drop of 1

• Crude oil stocks tumble by 4 million barrels

    Crude inventories fell last week, along with declining gasoline supplies, the government said Wednesday.

• U.S. Weekly Crude Inventories case

    U.S. crude oil refinery inputs averaged 13.8 million barrels per day during the week ending November 6, 145 thousand barrels per day below the previous week’’s average

• Analysts expect the DOE to increase the oil, gasoline stocks

    The Energy Department will likely report a 1.65 million-barrel build in crude oil reserves on Thursday for the week ended Feb. 12, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

• Gasoline Margins case as U.S. stocks Rise, DEMAND

    Gasoline refining margins slipped after a government report that showed motor fuel demand fell a second straight week and inventories increased. Motor-fuel inventories in the week ended Sept. 11 rose 547,000 barrels, or 0.3 percent, to 207.7 million, the Energy Department reported. Demand, based on what blenders and refiners supply to the

• Crude Oil May decline in the face of rising fuel supply, survey shows

    Crude oil futures may decline in anticipation of extended increases in U.S. fuel supplies as demand drops. Twenty-four of 44 analysts surveyed by Bloomberg News, or 55 percent, said futures will drop through Oct. 2. Seven respondents, or 16 percent, forecast that the market will rise and 13 said prices

• U.S. crude, gasoline stocks drop – API

    U.S. crude oil stockpiles posted surprise drop last week while gasoline inventories fell more than expected, according to a report from American Petroleum Institute. Commercial crude stocks fell by 1.4 million barrels and gasoline supplies fell 2.3 million barrels in the week ended Aug. 7, according to the weekly API report. Oil analysts

• Oil May Rise as U.S. Supplies Drop, Survey Shows

    Crude oil may increase next week on speculation that inventories will decline as imports drop and fuel demand strengthens, a Bloomberg News survey showed.

• Crude oil, the U.S. stocks on Ample, survey shows

    Crude oil futures may fall on speculation that U.S. fuel inventories will be sufficient to meet demand that’s been cut by the recession. Twenty-one of 36 analysts surveyed by Bloomberg News, or 58 percent, said futures will decline through Aug. 14. Eight respondets, or 22 percent, forecast that the market

• Crude Oil May Decline Next Week as Demand Drops, Survey Shows

    Crude oil futures may decline as refineries slow operations and demand decreases before the North American heating season begins, a Bloomberg News survey showed. Fifteen of 31 analysts, or 48 percent, said futures will drop through Oct. 9. Six respondents, or 19 percent, forecast that the market will rise and

• Japan crude stocks falling more than 4-month low

     Japan’s commercial crude inventories fell 3.3 percent last week to their lowest in over four months, while gasoline stocks rose 3.7 percent on higher motor fuel output and falling demand. Gasoline stocks hit 2.18 million kl as output recovered due to a higher refinery utilisation rate, the Petroleum Association of Japan

• Japan crude stocks falling more than 4-month low

     Japan’s commercial crude inventories fell 3.3 percent last week to their lowest in over four months, while gasoline stocks rose 3.7 percent on higher motor fuel output and falling demand. Gasoline stocks hit 2.18 million kl as output recovered due to a higher refinery utilisation rate, the Petroleum Association of Japan

• Pertamina warns gasoline imports by more than double in 2017

    Indonesia’s state oil and gas firm Pertamina expects Indonesia’s gasoline imports to more than double from existing levels by 2017 if the country does not build additional refineries, a company official said on Wednesday. The official, who declined to be quoted by name, warned that annual domestic gasoline consumption would climb to

• U.S. crude oil stocks fall big log fuels by

    U.S. crude oil stocks posted a much larger-than-anticipated fall last week on lower imports and higher demand from refiners ahead of the Labor Day holiday, the Energy Information Administration said in data released Thursday. Commercial crude oil stocks in the United States fell 5.9 million barrels to 337.5 million barrels in

• Pertamina Importing: 17.28 million barrels of fuel Jan-Feb

    Indonesian state oil company PT Pertamina plans to import 17.28 million barrels of oil products in January and February, a company official said Tuesday. Pertamina will import 5.5 million barrels of gasoline and 1.8 million barrels of gasoil this month, said Pertamina spokesman Basuki Trikora Putra. In February, it will