By Rachel Graham Feb. 25 (Bloomberg) -- Crude oil declined, following European and Asian equity markets as Greece’s budget deficit raised doubts about the economic recovery, and after a report showed U.S. stockpiles of the fuel increased last week. “Oil’s correlation with equities is strong. We’re watching Europe and the U.S. markets,” said Roland Stenzel, a crude and carbon trader at E&T Energie Handelsgesellschaft mbH in Vienna. “The situation in Greece makes you question the recovery.” U.S. stock futures also fell amid concern Greece’s credit rating will be lowered as the country struggles to push through fiscal cuts demanded by the European Union. Crude oil for April delivery fell as much as 58 cents, or 0.7 percent, to $79.42 a barrel in electronic trading on the New York Mercantile Exchange. It was at $79.53 a barrel at 9:08 a.m. London time. The U.S. Department of Energy released its weekly report on inventories yesterday. It showed that U.S. crude supplies gained 3.03 million barrels last week to 337.5 million, the highest since November. Stockpiles were forecast to increase 1.9 million barrels, in a Bloomberg News survey of analysts. “The crude inventory data wasn’t very optimistic,” Stenzel said. Oil closed up 1.5 percent yesterday at $80 a barrel, boosted by Federal Reserve Chairman Ben S. Bernanke’s comments that private-sector demand growth for goods and services will spur the economic rebound. Brent crude for April settlement fell as much as 51 cents, or 0.7 percent, to $77.58 a barrel on the ICE Futures Europe exchange in London. It was at $77.72 a barrel at 9:18 a.m. local time. To contact the reporter on this story: Rachel Graham in London rgraham13@bloomberg.net

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