By Grant Smith Oct. 8 (Bloomberg) -- Crude oil fell, giving up a rebound that followed coordinated interest rate cuts by central banks in the U.S., Europe and China intended to thaw credit markets. The Federal Reserve, European Central Bank, Bank of England, Bank of Canada and Sweden's Riksbank each cut their benchmark rates by half a percentage point to shore up confidence and global growth. Prices gained as much as 93 cents immediately after the rate reductions were announced. ``We're entering a steep cyclical downturn across almost all commodities,'' said Helen Henton, head of commodity research at Standard Chartered Plc in London. ``The demand picture will look increasingly worrisome for the next six months regardless of what central banks do.'' Crude oil for November delivery traded at $88.24 a barrel, $1.82 lower, on the New York Mercantile Exchange at 8:57 a.m. in New York. Before the rates cuts, crude fell as much as 4.5 percent, to $86.05, the lowest since Dec. 6, 2007. The U.S. Energy Department will probably say that U.S. fuel supplies rose last week, according to Bloomberg survey before the department's weekly report, scheduled for release at 10:35 a.m. in Washington. Gasoline inventories probably gained 1.5 million barrels in the week ended Oct. 3 from 179.6 million barrels the week before. Consumption of the motor fuel dropped 9.5 percent from a year earlier to 8.625 million barrels a day last week, according to MasterCard Inc. Credit ``conditions are unlikely to improve significantly in the next few weeks or months,'' Goldman Sachs Group Inc. commodity research analysts Giovanni Serio and Jeffrey Currie said in a report yesterday. ``Commodities prices may very well remain under pressure in the near future.'' To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

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