Oil fell to its lowest in more than five weeks on concern the economic recovery is faltering in the U.S., the biggest crude consumer. New York futures have lost all of this year’s gains. A Labor Department report today may show initial U.S. jobless claims climbed last week. Crude stockpiles advanced for a second week, according to government data released yesterday. Oil rose earlier today after the Wall Street Journal reported that three former senior officials at the Federal Reserve said the central bank should consider a new round of stimulus. “We’re clearly in a soft patch,” said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo, who forecasts Brent will be capped at $118 a barrel this quarter. “Gasoline demand is slowing, with high unemployment consumers are still a bit skeptical. If we see stronger growth signals, prices will move up but we haven’t seen that yet.” Crude for September delivery declined as much as $1.18 a barrel, or 1.3 percent, to $90.75 a barrel in electronic trading on the New York Mercantile Exchange. That’s the lowest since June 28. It was at $90.84 at 11:51 a.m. London time. West Texas Intermediate is down 0.6 percent this year. Brent for September settlement on the London-based ICE Futures Europe exchange dropped 1.2 percent to $111.85 a barrel. The European benchmark contract was at a $20.98 premium to U.S. futures, after reaching a record $22.67 on Aug. 2. U.S. Stockpiles U.S. crude inventories rose 950,000 barrels in the week ended July 29 to 354.9 million barrels, the Energy Department report showed. “Market participants seem to be concerned about growth prospects in the U.S.,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, who predicts crude will average $98 a barrel in the third quarter. Reports of stimulus “may give a short-term reprieve to prices and forecast demand but if these weak numbers keep coming out it’s going to swamp any positive sentiment around further quantitative easing,” he said. Gasoline stockpiles climbed 1.7 million barrels to 215.2 million, the highest since April 1. Supplies were forecast to increase 250,000 barrels, based on the median estimate from analysts surveyed by Bloomberg News. Distillate fuel inventories, a category that includes heating oil and diesel, increased 409,000 barrels to 152.3 million. Bollinger Rebound Crude in New York may rebound after prices reached technical support along the lower Bollinger Band yesterday, according to data compiled by Bloomberg. This indicator is at $90.62 a barrel today and the next level, the middle Bollinger Band, is at $95.84. Prices tend to change direction when they fail to breach chart support or resistance. A U.S. government report tomorrow may show payrolls increased by 85,000 workers in July after an 18,000 increase in June that was the smallest this year, according to the median forecast of 86 economists surveyed by Bloomberg News. Tropical Storm Emily moved west, pouring rain over the Caribbean island of Hispaniola, resuming a course that may threaten the U.S. East Coast this weekend, the U.S. National Hurricane Center said. Emily packed maximum sustained winds of 50 miles (80 kilometers) per hour, according to an advisory posted by the center before 11 p.m. New York time. The center of the storm may cross Haiti and the Dominican Republic today, bringing heavy rain and causing deadly flooding. To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net Grant Smith in London at gsmith52@bloomberg.net To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net

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