By Ben Sharples and Ann Koh Nov. 19 (Bloomberg) -- Oil traded near $80 a barrel in New York after rising yesterday as a government report showed U.S. crude and fuel supplies dropped along with refinery production and imports. Oil reached a one-week high of $80.33 yesterday after the Energy Department said crude inventories declined 887,000 barrels to 336.8 million last week. Stockpiles were forecast to increase 300,000 barrels, according to a Bloomberg News survey of analysts. Fuel supplies fell as refiners operated at the slowest pace in more than a year. “The big thing was the inventories data, which continues to show bullish signs with drawdowns in crude oil, gasoline and distillates,” said Ben Westmore, an energy and minerals economist at National Australia Bank Ltd. in Melbourne. “Every time you do have a surprise drawdown there is a bit of buoyancy in prices, and so a push above $80 is not unexpected.” Crude oil for December delivery traded at $79.48 a barrel, down 10 cents, in electronic trading on the New York Mercantile Exchange at 2:03 p.m. Singapore time. Yesterday, the contract rose 44 cents to settle at $79.58. Futures have gained 78 percent this year. U.S. imports of crude oil declined 0.9 percent to 8.58 million barrels a day, the Energy Department report showed. Along the Gulf of Mexico coast, imports tumbled 16 percent to 4.28 million as Hurricane Ida disrupted the arrival of shipments. “We will look for a rebound in oil production in the next couple of reports, however, we expect no such event for imports,” as fourth-quarter requirements for foreign oil are “limited” said Stephen Schork, president of consultant Schork Group Inc. of Villanova, Pennsylvania in a note to clients. Fuel Supplies “The recent $75-to-$80 range must already be pricing in a considerable degree of short-term weakness,” Barclays analysts led by Paul Horsnell said in an e-mail report dated yesterday. “Prices below $70 per barrel are in effect a signal to the industry to invest less for the long term.” Gasoline stockpiles dropped 1.76 million barrels to 209.1 million in the week ended Nov. 13. The 18 analysts surveyed by Bloomberg News were split in their forecasts whether stockpiles of the motor fuel had increased or fallen. Supplies of distillate fuel dropped 328,000 barrels to 167.4 million last week, 30 percent higher than a year earlier, the report showed. An 850,000-barrel decline was forecast, according to the Bloomberg News survey. Refineries operated at 79.4 percent of capacity, down 0.5 percentage point from the prior week, leaving units functioning at the slowest pace since September 2008 when Hurricanes Gustav and Ike stuck the Gulf. Brent crude oil for January settlement was at $79.55 a barrel, up 8 cents, at 2:01 p.m. in Singapore on the London- based ICE Futures Europe exchange. Yesterday it rose 50 cents, or 0.6 percent, to end the session at $79.47 a barrel. To contact the reporters on this story: Ben Sharples in Canberra at bsharples@bloomberg.net; Ann Koh in Singapore at akoh15@bloomberg.net

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