By Mark Shenk Nov. 19 (Bloomberg) -- Crude oil futures fell after a U.S. Energy Department report showed that inventories climbed more than forecast as fuel demand dropped. Supplies climbed 1.6 million barrels to 313.5 million barrels last week, the Energy Department said. Stockpiles were forecast to rise 1 million barrels, according to a Bloomberg News survey. U.S. fuel demand during the past four weeks averaged 19.1 million barrels a day, down 7 percent from a year ago. “The market is shooting for $50,” said Dan Flynn, an energy analyst at Alaron Trading Corp. in Chicago. “Prices should continue to slide, given demand and the anticipated worsening of the economy.” Crude oil for December delivery fell 32 cents, or 0.6 percent, to $54.07 a barrel at 10:54 a.m. on the New York Mercantile Exchange. Futures have dropped 63 percent since reaching a record $147.27 on July 11. Gasoline inventories rose 539,000 barrels to 198.6 million barrels in the week ended Nov. 14, the report showed. Analysts surveyed by Bloomberg news were split over whether supplies of the motor fuel increased or declined. Speculation that the recession will further curb demand is helping send prices lower. U.S. housing starts and permits for future construction both dropped to record lows in October, signs the housing downturn may extend into a fourth year. Construction starts on housing fell 4.5 percent in October, less than economists forecast, to an annual rate of 791,000 that was the lowest since records began in 1959, the Commerce Department said in Washington. Declines in construction spending Brent crude oil for January settlement rose 11 cents to $51.95 a barrel on London’s ICE Futures Europe exchange. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

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