July 8 (Bloomberg) -- Crude oil fell, poised for its longest losing streak since December, before a report forecast to show U.S. fuel inventories increased last week. OPEC cut its 2013 forecast for global oil demand by 5.7 million barrels a day to 87.9 million a day. Gasoline inventories in the U.S., the world’s largest energy consumer, probably rose 900,000 barrels last week, according to a Bloomberg News survey before today’s Energy Department report. Yesterday, the industry-funded American Petroleum Institute said supplies of the motor fuel rose 767,000 barrels. “It was only a matter of time before the oil market woke up to bearish fundamentals,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “If we get yesterday’s gasoline stock build confirmed by the Energy Department today, it will show how the recession is still eating away at demand.” The Movement for the Emancipation of the Niger Delta, the main militant group in Nigeria’s oil region, said it attacked crude trunk lines run by Royal Dutch Shell Plc and Eni SpA subsidiary Agip in Bayelsa state at about 2 a.m. local time. The pipeline feeding Eni’s Brass terminal was sabotaged at Nembe Creek, while Shell’s Nembe Creek line was damaged at the village of Asawo, MEND spokesman Jomo Gbomo said. Crude oil for August delivery fell as much as $1.11, or 1.8 percent, to $61.82 a barrel on the New York Mercantile Exchange, the lowest intraday price since May 26. Oil was at $62.03 a barrel as of 1:37 p.m. London time. Slow Recovery Oil has declined 15 percent from an eight-month intraday peak of $73.38 on June 30 as higher U.S. unemployment raised concern that the U.S. economy will be slow to recover. “Given the data from the U.S., the market has become cautious on the outlook for an economic recovery, and that’s tempered the oil price,” David Moore, a commodity strategist with Commonwealth Bank of Australia Ltd., said in an interview with Bloomberg Television. Machinery orders in Japan, the world’s third-largest oil consumer, fell unexpectedly for a third month in May, dropping 3 percent from April, the Cabinet Office said today. The decline is adding to signs that the recession isn’t moderating for the world’s second-largest economy. Crude oil inventories dropped 1.4 million barrels to 348.3 million, according to the API report. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 3.42 million barrels to 158 million, the highest since 1985. Energy Department Report The Energy Department is scheduled to release its weekly report at 10:30 a.m. in Washington. Gasoline inventories probably rose 900,000 barrels last week, according to a Bloomberg News survey conducted before today’s report. Oil was also hurt as the dollar advanced against the euro, reducing the appeal of commodities as an inflation hedge. The greenback strengthened to $1.3892 to the euro as of 9:19 a.m. London time from $1.3924 yesterday and $1.4142 on July 1. Brent crude for August settlement declined as much as 93 cents, or 1.5 percent, to $62.30 a barrel on London’s ICE Futures Europe exchange. It was at $62.47 a barrel at 1:37 p.m. London time. Yesterday, the contract fell 1.3 percent to $63.23, the lowest settlement price since May 27.

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