By Mark Shenk Nov. 4 (Bloomberg) -- Crude oil futures extended gains after a U.S. government report showed an unexpected decline in inventories. Supplies dropped 3.94 million barrels to 335.9 million in the week ended Oct. 30, the Energy Department said today in a weekly report. Inventories were forecast to increase by 1.5 million barrels, according to the median of 16 analyst estimates in a Bloomberg News survey. Crude oil for December delivery rose $1.08, or 1.4 percent, to $80.68 a barrel at 10:35 a.m. on the New York Mercantile Exchange. Oil traded at $80.13 a barrel before the release of the report at 10:30 a.m. in Washington. Oil also advanced as a weaker U.S. dollar bolstered the appeal of commodities as an alternative investment. The U.S. currency fell on speculation the Federal Reserve will say that it needs to keep borrowing costs low. The Federal Open Market Committee, which is ending a two-day meeting today, is scheduled to release a statement at around 2:15 p.m. in Washington. The Dollar Index, which tracks the currency against the U.S.’s biggest trading partners, dropped 0.5 percent today. Fed officials may today indicate their $1 trillion injection into the economy is helping to revive growth without requiring an increase in interest rates from near zero, economists said. A report last week showed the economy resumed growth after 12 months of contraction. U.S. stocks added to a global equity rally today. Alcoa Inc., the largest U.S. aluminum maker, and U.S. Steel Corp. climbed more than 3 percent on higher metal prices.

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