EIA data show strong buildup in oil inventories By Polya Lesova & Claudia Assis, MarketWatch NEW YORK (MarketWatch) -- Crude oil clung to losses Wednesday after a government report showed a larger-than-expected buildup in inventories and the euro hit a 10-month low against the dollar. Oil for May delivery, the most actively traded contract, was down $1.20, or 1.5%, at $80.67 a barrel in electronic trading on Globex. Ahead of the report, the contract traded at $80.45. The U.S. Energy Information Administration showed that crude-oil inventories rose by 7.245 million barrels last week, while analysts polled by Platts expected crude stocks up 1.67 million barrels. Gasoline stockpiles declined by 2.7 million barrels, while analysts expected a decline of 1.88 million barrels. Today's EIA number confirmed American Petroleum Institute data showing the same strong build in inventories Tuesday. "The energy market is facing a double dose of bearish news," said Tariq Zahir of Tyche Capital Advisors in a research note. With massive inventories and dollar strength, "bulls in the energy sector will have a hard time preventing a break of the $80 level and a start of some substantial weakness across the board in the energy sector," he added. The euro declined after Fitch Ratings downgraded Portugal's sovereign credit rating a notch to AA- from AA, citing concerns about the country's budget. Read full story about Portugal. The dollar index (DXY 81.75, +0.85, +1.06%) , which measures the U.S. unit against a trade-weighted basket of six major currencies, rose 1% to 81.75. Read Currencies. Earlier, the U.S. Commerce Department data showed durable-goods orders rising for a third straight month, signaling business confidence in the recovery. A report on sales of new homes for February showed sales of new homes fell 2.2%, more than expected.

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