By Rachel Graham Jan. 15 (Bloomberg) -- Crude oil fell for a fifth day as the dollar gained against the euro, curbing demand for commodities as a currency hedge. Oil dropped below $80 a barrel this week after a U.S. government report showed supplies of crude and fuels increased. The dollar gained on speculation a slowdown in Chinese bank lending will damp growth in the world’s third-biggest economy. “If the economy is improving there is an expectation oil stocks will start to fall, but it’s not happening,” said Frank Schallenberger, head of commodities research at Landesbank Baden-Wuerttemberg. “The dollar is an extra point for today.” Crude oil for February delivery fell as much as 62 cents, or 0.8 percent, to $78.77 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $78.89 at 9:50 a.m. London time. A close at that level would mean a drop of 4.4 percent this week. The dollar traded as high as $1.4378 against the euro. Crude oil may fall next week on speculation that U.S. inventories will climb for a third week and as fuel demand declines, a Bloomberg News survey of 41 analysts showed. Oil prices will drop through Jan. 22, according to 42 percent of the respondents. Thirteen respondents, or 32 percent, forecast an increase and 11 said prices will be little changed. Last week, 44 percent of analysts forecast a decline in futures. Oil settled below $80 a barrel on Jan. 13, the first time this year, after the U.S. Energy Department said crude and fuel inventories increased. Distillate fuel stockpiles rose for the first week in five. Crude oil stockpiles climbed for a second week, adding 3.7 million barrels to 331 million barrels, the Energy Department said Jan. 13. Gasoline and distillate inventories also rose. Brent crude for March settlement fell as much as 67 cents, or 0.9 percent, to $77.90 a barrel on the London-based ICE Futures Europe exchange. It was at $77.97 at 9:51 a.m. London time.

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