By Alex Lawler LONDON (Reuters) - Oil fell more than 3 percent to below $69 a barrel on Wednesday as a U.S. government report showed rising fuel stockpiles and weak demand in the world's top energy consumer. Stocks of distillates rose by 1.2 million barrels last week and gasoline inventories increased by 1.1 million barrels, the Energy Information Administration said. The increase in gasoline stocks was unexpected. "The data looks bearish on most fronts with product supplies building more than expected as refinery activity held firm at the prior week's level," said energy analyst Jim Ritterbusch. U.S. crude fell $2.47 to $68.06 a barrel by 10:51 a.m. EST, having dropped as low as $67.06 earlier in the session. Brent crude lost $2.19 to $64.25. The EIA report also showed U.S. total demand for oil products in the past four weeks was 19.10 million barrels per day, down 6.7 percent from a year ago. U.S. crude inventories were unchanged. Analysts had expected a 1.1 million barrel increase. But stocks rose by 1.8 million barrels at Cushing, the delivery point for U.S. crude futures. Prices were pressured earlier in the session after Barack Obama's victory in the presidential election boosted the U.S. dollar. The dollar later lost ground against other major currencies. As oil is traded in dollars, a firmer dollar makes oil more expensive for holders of other currencies and tends to pressure the price of crude lower. Crude prices have fallen by about half from a record high of $147.27 a barrel in July as the global credit crisis hit the wider economy, dampening fuel demand in major consumer nations. Oil had surged $6.62 or 10.36 percent on Tuesday, the largest one-day gain since September 22, on signs that Saudi Arabia and other OPEC members had made cuts in oil exports. Saudi Arabia has reduced exports after the Organization of the Petroleum Exporting Countries agreed last month to lower output, trade sources said. Fellow OPEC member Angola said on Wednesday it had implemented its share of the supply curbs. (Reporting by Alex Lawler in London and Fayen Wong in Perth, editing by Anthony Barker)

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