Crude oil fell from the highest level in almost four months on speculation that U.S. stockpiles increased because of lower demand. A gain in the dollar also reduced the appeal of commodities to investors. The U.S. currency rebounded to $1.3603 against the euro after trading yesterday near a two-month low. A stronger dollar increases the price of commodities for non-U.S. buyers and makes hard assets like oil less attractive as a hedge against inflation. U.S. crude supplies probably increased last week as refiners carried out maintenance, reducing demand, according to a Bloomberg News survey before a government report tomorrow. Stockpiles are at the highest since June 2007. “You have to get inventories down to a more normal level before you have a more stable, permanent increase in prices,” said Thina Saltvedt, an oil analyst at Nordea Bank AB in Oslo. “Demand in still weak.” Crude oil for May delivery fell as much as 68 cents, or 1.3 percent, to $53.12 a barrel, on the New York Mercantile Exchange. It traded at $53.26, down 1 percent, at 9:25 a.m. in London. Yesterday, oil gained $1.73 to $53.80 a barrel, the highest settlement since Nov. 28 after equities rose on speculation that the Obama administration’s plan to rid banks of distressed assets will spur growth. Oil stockpiles in the U.S. rose 1.1 million barrels in the week ended March 20 from 353.3 million the previous week, according to the median of 11 estimates by analysts before an Energy Department report this week. Ten of those surveyed said supplies increased, and one said there was no change. 82 Percent Refineries probably operated at about 82 percent of capacity, unchanged from the week before, according to the median of responses in the survey. Utilization rates unexpectedly declined last week. Refiners often shut units for maintenance in January and February as attention shifts away from heating oil and before gasoline use rises with warmer weather. Gasoline stockpiles probably dropped 500,000 barrels from 215.7 million the prior week, according to the survey. Supplies of distillate fuel, a category that includes heating oil and diesel, probably declined 500,000 barrels from 145.5 million. The Energy Department is scheduled to release its weekly report tomorrow at 10:30 a.m. in Washington. Brent crude oil for May settlement declined as much as 87 cents, or 1.6 percent, to $52.60 a barrel on London’s ICE Futures Europe exchange. It traded at $52.79 at 9:25 a.m. local time. The contract advanced $2.25, or 4.4 percent, to $53.47 a barrel yesterday. Prices ended the session at the highest level since Nov. 28.

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