Aug. 10 (Bloomberg) -- Gasoline fell as reports that U.S. worker productivity slipped in the second quarter and China's oil imports dropped indicated declining fuel demand. Gasoline sank as the Labor Department reported that the measure of employee output per hour decreased at a 0.9 percent annual rate, the first drop since the end of 2008. China, the world's biggest energy consumer, reduced net imports of crude- oil in July from a record high in June. "Risk is coming off the table as people fear slowing growth in the U.S. as well as China," said James Cordier, portfolio manager at OptionSellers.com in Tampa, Florida. Gasoline for September delivery lost 4.6 cents, or 2.2 percent, to $2.0727 a gallon at 9:41 a.m. on the New York Mercantile Exchange. Gasoline and equities slipped as the Federal Reserve prepared to indicate today whether it will take measures to safeguard the U.S. economic recovery. The Standard & Poor's 500 Index lost 1.2 percent as of 9:43 a.m. in New York. "What could save the market is if the Fed says they're going to embark on another round of quantitative easing," said Phil Flynn, vice president of research at PFGBest in Chicago. Supplies of the motor fuel probably were unchanged last week, according to the median estimate of 15 analysts in a survey by Bloomberg News. Gasoline Supplies The Energy Department reported Aug. 4 that gasoline supplies in the week ended July 30 reached a three-month high. Demand, measured by what refiners and blenders supplied to wholesalers, slipped 1.6 percent. The front-month contract for gasoline traded at a discount to heating oil futures for the fifth consecutive day. Gasoline settled at a 3.51-cent discount to heating oil, based on settlement prices, the largest since Jan. 11. The premium of gasoline over crude oil, or the crack spread, based on September contracts, was steady at $7.66 a barrel. Stockpiles of distillates, including diesel and heating oil, probably rose 1.75 million barrels last week, according to the survey. Inventories were 25 percent above the period's five- year average in the week ended July 30, according to the department. Heating oil for September delivery dropped 4.83 cents, or 2.2 percent, to $2.1055 a gallon. The heating oil crack spread, based on September contracts, lost about 9 cents to $8.98 a barrel. Regular gasoline at the pump, averaged nationwide, rose 0.7 cent to $2.781 a gallon yesterday, AAA said on its website. --With assistance from Courtney Schlisserman in Washington. Editors: David Marino, Charlotte Porter

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