By Claudia Assis and Polya Lesova, MarketWatch SAN FRANCISCO (MarketWatch) -- Oil futures held to losses Wednesday after the Department of Energy reported an increase in inventories, but the retreat moderated slightly after the rise in inventories was not as large as the one reported a day earlier by a trade group. Oil prices were pummeled by the supply glut and a report Wednesday showing a record low in sales of new homes in the U.S., which rekindled fears of a weak demand for energy products. A rising dollar also weighed on prices. Crude oil for August delivery dropped $2.23, or 2.8%, to $75.60 a barrel on the New York Mercantile Exchange. The DOE's Energy Information Administration said oil inventories increased 2 million barrels in the week ended June 18. Gasoline stocks declined by 800,000, the EIA said. Analysts polled by Platts expected a decline of 1.5 million barrels in crude stocks and a drop of 500,000 barrels in gasoline supplies. Stocks of distillates, which include heating oil and diesel, increased 300,000 barrels. Refineries operated at 89.4% of their capacity last week. The analysts surveyed had expected an increase of 1.4 million barrels for distillates stockpiles, and a refinery rate of 88.4%. Late Tuesday, trade group American Petroleum Institute reported that crude inventories increased by 3.69 million barrels and gasoline stocks by 810,000 barrels last week. Prices of oil products followed crude lower. Reformulated gasoline for July delivery declined 6 cents, or 2.7%, to $2.08 a gallon. July heating oil retreated 5 cents, or 2.5%, to $2.06 a gallon. Oil and other commodities such as gold had accelerated losses after a worse-than-expected report on sales of new homes earlier Wednesday. Sales plunged a record 33% in May to a record-low level after a federal subsidy for home buyers expired, the Commerce Department said Wednesday. See Economic Report on home sales. Sales dropped to a seasonally adjusted annual rate of 300,000, the lowest since records begin in 1963. Sales in March and April were also revised lower; April's sales pace was 446,000 compared with 504,000 originally reported. Natural gas rises Natural gas for July delivery, however, bucked the trend to post gains. July natural gas added 7 cents, or 1.4%, to $4.82 per million British thermal units. Investors were recovering some "confidence" after sharp losses in the past two sessions, analyst Tim Evans with Citi Futures Perspective said in a report Wednesday. Traders are now awaiting news of the interest rate decision in the U.S. The statement from the Federal Open Market Committee is due at 2:15 p.m. Eastern. Most analysts expect no change in interest-rate policy. In other energy news, the International Energy Agency said Wednesday that the average import oil price will likely increase from $77 a barrel this year to $86 a barrel by 2015. The price assumption was published in the IEA's medium-term oil and gas market report. Read more about the IEA's predictions.

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