Crude oil traded little changed, erasing earlier gains, as crude supplies in the U.S. rose to the highest in almost 19 years and China’s economic expansion decelerated to its slowest pace in almost a decade. Oil inventories rose by 5.67 million barrels to 366.7 million last week, the highest since September 1990, the Energy Department said yesterday. China’s gross domestic product grew 6.1 percent in the first quarter from a year earlier, compared with a 6.8 percent gain in the previous three months. “Inventories are so high, not only in the U.S. but in Europe and Asia, across most products,” said Andy Sommer, an analyst at Elektrizitaets-Ges Laufenburg AG in Dietikon, Switzerland. “Prices should come back down until we see real signs of demand stabilizing or decreasing inventories.” Crude oil for May delivery traded for $49.47 a barrel, 22 cents higher on the New York Mercantile Exchange as of 1:02 p.m. London time. It earlier advanced as much as 2.1 percent to $50.30. Prices are up 11 percent so far this year. Industrial production in Europe fell 18.4 percent from the year-earlier month, the biggest drop since the data series began in 1986, the European Union’s statistics office in Luxembourg said today. U.S. inventories swelled in yesterday’s report as refiners lowered processing rates in response to the crash in demand. Refineries operated at 80.4 percent of capacity, down 1.5 percentage points from the week before, the lowest since the week ended Sept. 26, when units were shut in the aftermath of Hurricanes Gustav and Ike, the department said. A gain of 0.1 percentage point was forecast. Buyers’ Expectations Daily fuel demand averaged 18.7 million barrels over the past four weeks, down 5.2 percent from a year earlier, according to the department. Still, prices remain near $50 a barrel, a signal that buyers expect the economy to pull out of its slump, according to MF Global Ltd. The Federal Reserve said in its Beige Book business survey yesterday that economic contractions were slowing or stabilizing in San Francisco, the largest district, as well as in New York, Chicago, Kansas City and Dallas. “All this seems to be lending credence to the argument that the U.S. economy may be stabilizing, albeit at a very low base,” said Edward Meir, an analyst at MF Global Ltd. in Connecticut. “Markets seem to be increasingly desensitized by the poor demand readings as participants seem to be focusing on somewhat more upbeat prospects down the road.” Brent crude oil for June settlement rose as much as $1.70 cents, or 3.3 percent, to $53.49 a barrel on London’s ICE Futures Europe exchange. It was at $52.74 a barrel at 1:02 p.m. London time.

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