Sept. 18 (Bloomberg) -- Crude oil fluctuated as equity gains indicated that the U.S. is pulling out of a recession amid ample fuel supplies in the world’s biggest energy-using country. Oil is heading for a 4.5 percent increase this week, a second straight weekly advance, as the stock market climbed on data showing an expansion in U.S. housing starts and industrial capacity utilization. The country’s supplies of crude oil, gasoline and distillate fuel are higher than average, according to the Energy Department. “This is a range-bound market,” said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. “There’s nothing at this moment that is giving it a direction.” Crude oil for October delivery fell 34 cents, or 0.5 percent, to $72.13 a barrel at 10 a.m. on the New York Mercantile Exchange. Prices have risen 62 percent this year. Stockpiles of crude oil dropped 4.73 million barrels to 332.8 million last week, the Energy Department reported on Sept. 16. The decline left stockpiles 7.9 percent above the five-year average for the week. Supplies of distillate fuel, which include heating oil and diesel, climbed 2.24 million barrels to 167.8 million, the highest since January 1983 and 24 percent more than the five- year average. Gasoline inventories rose 547,000 barrels to 207.7 million last week, 4 percent greater than average, the department said. Dollar Rebounds Futures dropped as much as 1.7 percent earlier today as the dollar climbed for the first time in five days. A stronger U.S. currency dims investor demand for dollar-priced assets to hedge against inflation. The dollar traded at $1.4721 per euro from $1.4741 yesterday. It reached $1.4767 yesterday, the weakest level since Sept. 25, 2008. “The rally in energy is looking a little long in the tooth,” said John Kilduff, senior vice president of energy at MF Global in New York. “There isn’t any economic data to give the market any strength. The dollar is a bit stronger today, which is weighing on things.” Brent crude oil for November settlement declined 8 cents to $71.47 a barrel on the London-based ICE Futures Europe exchange. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

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