Dec. 5 (Bloomberg) -- Oil futures fell after the U.S. Energy Department said gasoline stockpiles climbed the most in more than a decade.
Futures fell as much as 1.2 percent as supplies of the motor fuel rose 7.86 million barrels to 212.1 million barrels last week, beating the median forecast for a 1.55 million increase in a Bloomberg survey of 12 analysts. It was the biggest jump in barrels since Sept. 21, 2001.
“We have such a huge build in gasoline and it’s really crushing the market,” said Bill Baruch, a senior market strategist at Iitrader.com in Chicago. “Everybody is worried about demand and it’s taking a hit on oil.”
Crude oil for January delivery decreased 78 cents, or 0.9 percent, to $87.72 a barrel at 10:59 a.m. on the New York Mercantile Exchange. Oil traded at $88.41 before release of the inventory report at 10:30 a.m.
Brent oil for January settlement on the London-based ICE Futures Europe Exchange dropped 95 cents, or 0.9 percent, to $108.98 a barrel.
Gasoline for January delivery tumbled 4.02 cents, or 1.5 percent, to $2.6488 a gallon on the Nymex.
Stockpiles of crude declined 2.36 million barrels to 371.8 million in the seven days to Nov. 30, the Energy Department said. Inventories were forecast to decrease 500,000 barrels, according to the survey.
Oil also fell as euro-area services and manufacturing output shrank for a 10th month in November and as the U.K. cut the economic growth forecast.
A composite index based on a survey of purchasing managers in services and manufacturing industries reached 46.5 in November, London-based Markit Economics said today. A reading below 50 indicates contraction.
Forecasts from the U.K.’s Office for Budget Responsibility show the economy will shrink 0.1 percent this year instead of the 0.8 percent growth predicted in March, and expand 1.2 percent next year instead of 2 percent, Chancellor of the Exchequer George Osborne said in his autumn statement to Parliament.