Crude oil fell on speculation that a government report tomorrow will show U.S. inventories climbed for the 18th time in 20 weeks. Stockpiles probably increased 2.5 million barrels last week, according to the median of 13 analyst estimates in a Bloomberg News survey. Gasoline stockpiles rose 500,000 barrels. Crude oil for March delivery fell 34 cents, or 0.9 percent, to $39.22 a barrel at 11:13 a.m. on the New York Mercantile Exchange. Prices gained as much as $2.24, or 5.7 percent, earlier today. Oil is down 12 percent this year and 58 percent from a year ago. The Energy Department is scheduled to release its weekly inventory report tomorrow at 10:30 a.m. in Washington. “There’s a battle between the short-term and longer-term outlook,” said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago. “The front-months aren’t going to get much higher because the short-term outlook is so bleak.” Futures have traded between $38.60 and $42.68 in New York since Feb. 2. “Every time the market gets below $40 a barrel something happens that sends it back up,” said Peter Beutel, president of Cameron Hanover Inc., an energy consulting company in New Canaan, Connecticut. “Prices only rise a few dollars and retreat. The area between $39 and $42 appears to be our home.” Brent crude oil for March settlement increased 6 cents to $46.08 a barrel on London’s ICE Futures Europe exchange.

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