By Mark Shenk Aug. 5 (Bloomberg) -- Crude oil fell for a second day after the number of Americans filing applications for unemployment insurance climbed to a three-month high, bolstering concern that the economic recovery is slowing. Oil slipped as much as 1 percent after the Labor Department reported that initial jobless claims increased by 19,000 to 479,000 last week, the most since April. A U.S. Energy Department report yesterday showed that crude oil supplies in the Midwest surged to a record as nationwide fuel supplies rose. “The economic data doesn’t bode well for oil demand,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It’s hard to justify oil near $82 a barrel with the economy struggling.” Crude oil for September delivery declined 66 cents, or 0.8 percent, to $81.81 a barrel at 9:03 a.m. on the New York Mercantile Exchange. Futures are up 14 percent from a year ago. Brent crude oil for September settlement fell 71 cents, or 0.9 percent, to $81.49 a barrel on the London-based ICE Futures Europe exchange. Economists forecast claims would fall to 455,000, according to the median of 43 projections. Estimates ranged from 444,000 to 470,000. The government revised the prior week’s total to 460,000 from a previously reported 457,000. The country’s jobless rate rose to 9.6 percent last month from 9.5 percent in June, according to a Bloomberg survey before a separate Labor Department report tomorrow. Crude oil inventories in the 15-state Midwest rose to 97.7 million barrels in the week ended July 30, the highest level recorded since the data started in 1990, according to the Energy Department. Supplies in Cushing, Oklahoma, the delivery point for New York futures contracts, were less than 1 percent below the all-time high set in May, the report showed. U.S. gasoline supplies increased 729,000 barrels, or 0.3 percent, to 223 million, the highest level since April 30. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

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