By Christian Schmollinger Sept. 9 (Bloomberg) -- Oil pared gains in New York on expectations stockpiles will increase as U.S. demand falls following the end of the peak summer demand period. An Energy Department report today will probably show U.S. crude supplies climbed 1 million barrels last week, according to the median of 15 responses in a Bloomberg News survey. Gasoline demand slid to the lowest level in six months last week, according to MasterCard Inc.’s SpendingPulse report yesterday. “Now is the time between the demand periods,” said Ken Hasegawa, a commodity derivative sales manager at Newedge in Tokyo. “Summer is done and winter demand hasn’t started. The level of crude and product inventories is much higher than the five-year average.” The October contract was at $74.73 a barrel, up 6 cents, in electronic trading on the New York Mercantile Exchange at 1:59 p.m. Singapore time. Futures earlier gained as much as 60 cents, or 0.8 percent, to $75.27. Yesterday, it added 58 cents to $74.67. Prices have dropped 5.7 percent this year. U.S. motorists bought an average 9.13 million barrels a day in the week ended Sept. 3, down 0.5 percent from the prior week, the Mastercard report showed. It was the lowest level since Feb. 12 and the third straight drop. The U.S. dollar strengthened against the euro today on speculation economic growth in the 16-nation region is slowing. The greenback was at $1.2692 per euro from $1.2720 in New York yesterday. Brent crude oil for October settlement was at $78.22 a barrel, up 5 cents, on the London-based ICE Futures Europe exchange. It earlier climbed as much as 39 cents, or 0.5 percent, to $78.56. The contract gained 43 cents, or 0.6 percent, to $78.17 yesterday, the highest price since Aug. 10. Brent cost $3.49 a barrel more than Nymex futures today. The spread was at $3.65 on Sept. 7, the widest between the most- active contracts on the two exchanges since May 20. Inventory Report An Energy Department report will probably show motor fuel stockpiles declined 1 million barrels last week, according to the Bloomberg News survey. Distillate inventories probably gained 700,000 barrels, the survey said. U.S. crude stockpiles fell 7.31 million barrels last week, the American Petroleum Institute said yesterday. Gasoline supplies rose 654,000 barrels last week, the group said. The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey. “The crude oil market is not so strong even with the drop in API numbers,” said Newedge’s Hasegawa. U.S. refiners probably cut crude-processing rates to the lowest level since April as they began seasonal maintenance, a Bloomberg News survey showed. Refineries operated at 86.5 percent of capacity last week, down 0.5 percentage point from a week earlier, according to the median of 14 analyst estimates in the survey. The Energy Department is scheduled to release its weekly supply report at 11 a.m. today in Washington, a day later than usual because of the Labor Day holiday on Sept. 6. Saudi Arabia Saudi Arabian Oil Co., the world’s largest state-owned oil company, will supply full contractual volumes of crude to Asia for loading in October, according to refinery officials in Japan and South Korea. Saudi Aramco, as the company is known, will provide 100 percent of cargoes sold under long-term contracts for an 11th month, according to a survey of refinery officials, all of whom asked to remain unidentified, citing confidentiality agreements with the Middle East producer. Tropical Storm Igor, the ninth named storm of the 2010 Atlantic Hurricane season, is moving west away from the Cape Verde Islands at 7 miles (11 kilometers) per hour, according to an advisory from the U.S. National Hurricane Center at 11 p.m. Miami time. Slow strengthening is forecast over the next 48 and it could become a hurricane by then, the center said. To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

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