By Grant Smith Oct. 7 (Bloomberg) -- Oil rose for a third day in New York after an industry report showed a decline in fuel and crude stockpiles in the U.S., the biggest energy-consuming nation. Crude traded above $71 a barrel after the American Petroleum Institute said yesterday that distillate fuel inventories fell by 2.91 million barrels last week and crude supplies dropped by 254,000 barrels. The U.S. Energy Department will report government supply figures today. “The unexpected drawdown in inventories has helped anchor prices around $71 in New York, but concerns about the rate of recovery are inhibiting a break higher,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. Crude oil for November delivery rose as much as 88 cents, or 1.2 percent, to $71.76 a barrel in electronic trading on the New York Mercantile Exchange. It was at $71.13 at 1:38 p.m. London time. Yesterday, the contract gained 47 cents to settle at $70.88. The API released its data at 4:30 p.m. New York time. Prices have climbed 60 percent this year. U.S. crude oil inventories reported by the Energy Department probably rose last week as refineries performed seasonal maintenance, a Bloomberg News survey showed. Stockpiles increased 2 million barrels in the week ended Oct. 2 from 338.4 million the week before, according to the median of estimates from 14 analysts. ‘Still Weak’ “Fundamentals are still weak,” BNP Paribas SA senior oil analyst Harry Tchilinguirian said in an interview with Bloomberg radio. “This year is going to end with a contraction in global demand. There have been positive supply surprises in places outside OPEC like Russia, and OPEC’s own compliance has slipped.” Supplies of crude, gasoline and distillate fuel, a category that includes heating oil and diesel, were above the five-year average in the week ended Sept. 25, the department said on Sept. 30. The department is scheduled to release its Weekly Petroleum Status Report at 10:30 a.m. today in Washington. Oil-supply totals from the API and Energy Department moved in the same direction 76 percent of the time over the past four years, according to data compiled by Bloomberg. Demand Increase The Energy Department increased its forecast for global oil consumption in the fourth quarter and next year, citing “sustained economic growth” in China and a recovery in other Asian countries. Global crude demand may reach 84.7 million barrels a day in the fourth quarter and 84.77 million barrels a day in 2010, the department said yesterday in its Short-Term Energy Outlook. U.S. gasoline consumption jumped as pump prices dropped below $2.50 and less rain fell in the Midwest and Gulf Coast, according to a MasterCard Inc. report. Motorists bought an average 9.23 million barrels of gasoline a day in the week ended Oct. 2, MasterCard, the second- biggest credit-card company, said in its report yesterday. That’s the most since the week ended Aug. 21. Brent crude oil for November settlement rose as much as 89 cents, or 1.3 percent, to $69.45 a barrel on the London-based ICE Futures Europe exchange. It was at $68.89 at 1:38 p.m. London time.

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