By Margot Habiby March 18 (Bloomberg) -- Oil fell for the first time in three days as a stronger dollar trimmed demand for commodities and a report showed U.S. crude stockpiles increased last week. Oil fell as much as 1.3 percent as the dollar strengthened against the euro amid concern Greece will fail to secure financial assistance from the European Union. Crude oil inventories grew last week to the highest level since August, according to a U.S. government report yesterday. “The dollar’s up, and we’re reverting back to the standby correlation,” said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. Oil reached a 10-week high near $83 a barrel yesterday and “will probably stagnate” if it doesn’t break $84 to $85 in the next week or so, he said. Crude oil for April delivery fell 43 cents, or 0.5 percent, to $82.50 a barrel at 9:46 a.m. on the New York Mercantile Exchange. It settled at $82.93 yesterday, the highest close since Jan. 6. Oil has risen 71 percent in the past year. The dollar gained 0.4 percent against the euro to $1.3677 at 9:47 a.m. in New York from $1.3738 yesterday. U.S. crude oil inventories rose last week for a seventh week to 344 million barrels, according to the U.S. Energy Department, the highest level since the week ended Aug. 7. Supplies are 5 percent higher than the five-year average. Gasoline stockpiles declined 1.71 million barrels to 227.3 million in the week ended March 12, 3.6 percent above the five- year average. It was the second consecutive decline. Gasoline for April delivery lost 1.69 cents, or 0.7 percent, to $2.2928 a barrel on the Nymex. Jobless Claims Fewer Americans filed first-time claims for jobless benefits last week for the third consecutive time, a sign the labor market is gradually improving along with the economy. U.S. first-time jobless applications dropped by 5,000 to 457,000 in the week ended March 13, in line with forecasts, Labor Department figures showed today in Washington. The number of people receiving unemployment insurance increased, and those getting extended benefits also rose. “The jobs report was not great,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “We’re not seeing any big boost in jobs, and I think that has sort of added to the bearishness.” Brent crude for May settlement fell 41 cents, or 0.5 percent, to $81.55 a barrel on the ICE Futures Europe exchange in London. To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net.

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