By Mark Shenk Nov. 12 (Bloomberg) -- Crude oil fell on speculation that a government report will show U.S. stockpiles increased for the fourth time in five weeks. Supplies rose 1 million barrels last week, according to the median of 16 responses in a Bloomberg News survey before today’s Energy Department report. The American Petroleum Institute reported on Nov. 10 that crude oil and fuel inventories climbed in the week ended Nov. 6. “The API showed builds across the board, and if this is confirmed in this report, this could be a very interesting day,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “If the reports are similar, we will probably test $77.75.” Crude for December delivery fell $1.04, or 1.3 percent, to $78.24 a barrel at 9:09 a.m. on the New York Mercantile Exchange. Futures have climbed 75 percent this year. U.S. crude oil supplies rose 1.22 million barrels to 337.5 million last week, according to the industry-funded API. Gasoline stockpiles climbed 1.4 million barrels to 211.5 million and inventories of distillate fuel, a category that includes heating oil and diesel increased 640,000 barrels to 168.8 million. Gasoline stockpiles probably dropped 350,000 barrels, according to the median of estimates in the Bloomberg News survey. Supplies of distillate fuel declined 700,000 barrels, the respondents said. The Energy Department is scheduled to release its weekly report at 11 a.m. in Washington, a day later than usual because of the Veterans Day holiday yesterday. Dollar Gains Oil extended its drop as the U.S. dollar gained against the euro, diminishing the appeal of raw materials as an alternative investment. The dollar traded at $1.4911 against the euro today, from $1.4987 yesterday. Brent crude for December settlement fell 89 cents, or 1.1 percent, to $77.06 a barrel on the London-based ICE Futures Europe exchange. The International Energy Agency increased its forecast for 2010 global oil demand as the pace of economic recovery in Asia and the Middle East picks up. Global oil consumption is likely to average 86.2 million barrels a day next year, 140,000 barrels more than previously estimated, the IEA said in its monthly report. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

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