Oil falls to near $76 as US crude supplies grow

[September 15, 2010]  SINGAPORE (AP) -- Oil prices fell to near $76 a barrel Wednesday in Asia after a report showed U.S. crude supplies jumped last week, suggesting demand remains tepid.

Benchmark crude for October delivery was down 51 cents at $76.29 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 39 cents to settle at $76.80 on Tuesday.

The American Petroleum Institute said late Tuesday that crude inventories rose 3.3 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had forecast a drop of 2.25 million barrels. Inventories of gasoline and distillates fell, the API said.

The Energy Department's Energy Information Administration reports its weekly supply data later Wednesday.

Some analysts expect record crude inventories to weigh on oil prices as demand remains weak in developed countries. National Australia Bank lowered its forecast for crude prices to an average of $82 a barrel in the fourth quarter from $84.

"While growth in crude oil demand continues to languish in many developed economies, world oil production remains robust," NAB said in a report. "The situation has continued to create abundant global oil supply, especially in those countries where economic activity remains most listless."

In other Nymex trading in October contracts, heating oil was down 0.76 cent at $2.121 a gallon and gasoline fell 0.97 cents to $1.959 a gallon. Natural gas dropped 1.4 cents to $3.952 per 1,000 cubic feet.

In London, Brent crude fell 43 cents to $78.84 a barrel on the ICE Futures exchange.

[Associated Press; By ALEX KENNEDY]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.