Crude oil fell, retreating from its highest level in four months, as signs of a deepening global recession dimmed the outlook for a recovery in fuel consumption. Japan, the world’s third-largest oil consumer, reported that exports in February dropped a record 49.4 percent from a year ago as demand for electronics in the U.S. and Europe declined. U.S. crude stockpiles last week climbed 4.58 million barrels, according to the American Petroleum Institute yesterday. “The macro-economic data is showing nothing in the near- term that oil demand is going to pick up,” said Toby Hassall, an analyst with Commodity Warrants Australia Ltd. in Sydney. “These factors don’t suggest oil will maintain its momentum. The fact that we are still building on the inventories reflects the weak demand environment.” Crude oil for May delivery declined as much as 82 cents, or 1.5 percent, to $53.16 a barrel on the New York Mercantile Exchange. It was at $53.17 a barrel at 12:41 p.m. Singapore time. The contract rose 18 cents to $53.98 yesterday, the highest close since Nov. 28. Prices are up 19 percent this year. Oil also dropped after the U.S. stock market declined yesterday following calls by the nation’s two top banking officials for stronger regulation of financial firms. The Dow Jones Industrial Average slid 115.89 points, or 1.5 percent, to 7,659.97. The U.S. dollar also gained against other currencies, reducing the appeal of commodities as an inflation hedge. The dollar index rose to 84.24 today from 83.85. “The steep gains we’ve seen in crude aren’t backed up by a constructive story for crude,” said Commodity Warrants’ Hassall. “If we see this rally in equities come to an end and the dollar regains some of the ground it lost last week, oil will have a hard time rallying.” Japan’s Imports Japan’s crude oil imports fell for a fourth month in February as sluggish industrial output and warmer weather damped automotive- and heating-fuel demand. The country shipped in about 4.26 million barrels a day last month, down 14 percent from a year earlier, a finance ministry preliminary trade report released in Tokyo shows. U.S. crude oil stockpiles rose 4.58 million barrels to 354.5 million in the week ended March 20, a report by the industry-funded American Petroleum Institute showed. “There is still a lot of crude oil out there at the moment,” said Ken Hasegawa, an energy derivative sales manager at Newedge in Japan. “No one is worried about a shortage.” Energy Department A separate report from the U.S. Department of Energy may show that oil stockpiles rose 1.1 million barrels in the week ended March 20 from 353.3 million the previous week, according to a Bloomberg survey of analysts. Inventories in the week ended March 13 were the highest since June 2007. The Energy Department is scheduled to release its weekly supply report today at 10:30 a.m. in Washington. Oil-supply totals from the API and DOE moved in the same direction 75 percent of the time over the past four years, according to data compiled by Bloomberg. API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The Energy Department requires reports to be filed for its survey. Brent crude oil for May settlement fell as much as 94 cents, or 1.8 percent, to $52.56 a barrel on London’s ICE Futures Europe exchange.

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