By Mark Shenk Oct. 8 (Bloomberg) -- Crude oil fluctuated as the number of Americans filing jobless claims dropped, signaling the country is emerging from recession, while fuel stockpiles increased. Oil climbed as much as 1.5 percent earlier today as government data showed that applications for unemployment benefits fell to the lowest since January and the dollar slipped to a two-week low against the euro. The U.S. Energy Department reported that inventories of gasoline and distillate fuel, a category that includes heating oil and diesel, rose last week. “The crude market is really stuck in a range and it’s hard to see what will get the market to move out of it,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis. Crude oil for November delivery fell 2 cents to $69.55 a barrel at 9:50 a.m. on the New York Mercantile Exchange. Prices climbed as much as $1.01 and dropped 40 cents during today’s session. Oil has traded between $65.05 and $75 since Aug. 1. The dollar dropped against the euro as European Central Bank President Jean-Claude Trichet said the region’s labor market may deteriorate less than forecast as the economy recovers. The U.S. currency slipped to $1.4744 per euro from $1.4691 yesterday. It earlier touched $1.4801, the weakest level since Sept. 24. “On any given day there can be extreme movement based on what the dollar and equities do,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. “The bottom line is that until we come out of this range everything is a tempest in a teapot, a lot of movement but with no meaning.” U.S. Inventories Gasoline stockpiles rose 2.94 million barrels to 214.4 million, according to the department. Distillate fuel stockpiles grew by 679,000 barrels to 171.8 million last week, the highest since January 1983. Crude oil inventories fell 978,000 barrels to 337.4 million as refineries bolstered operating rates and imports dropped, the report showed. Brent crude oil for November settlement rose 20 cents, or 0.3 percent, to $67.40 a barrel on the London-based ICE Futures Europe exchange.

Source