By Mark Shenk Dec. 2 (Bloomberg) -- Crude oil fell after an industry report showed that inventories in the U.S., the world’s biggest fuel-consuming country, climbed. Stockpiles of crude oil increased 2.89 million barrels to 337.4 million last week, the American Petroleum Institute said in a report yesterday. Inventories of gasoline and distillate fuel, a category that includes heating oil and diesel, also gained. Analysts surveyed by Bloomberg News forecast that a U.S. Energy Department report today will show a drop in oil supplies. “The market is off because of the gains in last night’s inventory report,” said Michael Fitzpatrick, vice president of energy with MF Global in New York. “The report points to weak demand and is adding to a growing weight of skepticism” that prices can stay at this level. Crude oil for January delivery declined 38 cents, or 0.5 percent, to $77.99 a barrel at 9:02 a.m. on the New York Mercantile Exchange. Prices are up 75 percent this year. Futures have traded between $74.79 and $82 since Oct 15. Crude gained yesterday after reports showed signs of increased manufacturing output in the U.S. and China, which account for about 33 percent of global oil consumption, according to BP PLC, which publishes its BP Statistical Review of World Energy each June. The U.S. Energy Department is scheduled to release its weekly supply report today at 10:30 a.m. in Washington. Stockpiles of crude oil probably fell 400,000 barrels, according to the median of 15 analyst responses. Oil-supply totals from the API and Energy Department moved in the same direction 75 percent of the time in the past four years, according to data compiled by Bloomberg. Fuel Stockpiles Inventories of distillate fuel climbed 1.06 million barrels to 168 million, yesterday’s API report showed. The Energy Department will probably say that stockpiles fell 150,000 barrels last week, according to the Bloomberg News survey. The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey. “Eighty-dollars is proving a tough nut to crack, and last night’s stats put paid to any further testing of the resistance there,” said Christopher Bellew, senior broker at Bache Commodities Ltd. “There doesn’t seem any shadow of doubt that OPEC will leave quotas unchanged, and that’ll keep prices range- bound until the meeting.” Ministers from Iran, Nigeria and Kuwait have indicated the Organization of Petroleum Exporting Countries will keep supply quotas unchanged at their Dec. 22 meeting. Yachtsmen Released Five British yachtsmen detained by Iran’s navy in the Persian Gulf last week were released today, state-run media reported. Oil prices dropped about 50 cents a barrel after the news of the release. Iran’s Revolutionary Guards Corps said questioning of the sailors made it clear they had entered Iranian waters by mistake, the Fars news agency reported. Brent crude oil for January settlement fell 35 cents, or 0.4 percent, to $79 a barrel on the London-based ICE Futures Europe exchange. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

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