July 13 (Bloomberg) -- Crude oil fell for a second day as Asian stocks declined, raising speculation that the global recession will sap demand for fuel and increase stockpiles. Oil and fuel inventories in the members of Organization for Economic Cooperation and Development rose in May to about 7 percent more than last year, the International Energy Agency said July 10. The MSCI Asia Pacific Index dropped to an eight- week low today on concern the U.S. economic recovery will be delayed. Taiwan’s exchange had its biggest drop in a month. “There is still a weak demand outlook and a bearish sentiment to the market,” said Victor Shum, a senior principal at Purvin & Gertz Inc. in Singapore. “There is more of a focus on fundamentals but the price direction is closely correlated to movements in the stock market and the dollar.” Oil for August delivery dropped as much as 97 cents, or 1.6 percent, to $58.92 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $59 a barrel at 2:20 p.m. in Singapore. Oil on July 10 capped its biggest weekly decline since January as U.S. consumer confidence fell and fuel stockpiles in the largest oil consumer rose for a fourth week. New York oil reached an eight-month high of $73.38 a barrel on June 30. Prices gained 37 percent the preceding two months as rising equity markets emboldened investors and the falling U.S. dollar steered funds into commodities. Gasoline Demand “It’s been a dose of reality,” said Toby Hassall, a research analyst at Commodity Warrants Australia Pty in Sydney. “There’s been a lot of concern stemming from the rising gasoline stockpiles over there in the States, which doesn’t bode well for the demand side of things.” The dollar rose to $1.3916 against the euro from $1.3936 on July 10, limiting the appeal of commodities as an inflation hedge. The MSCI Asia Pacific Index dropped 2.1 percent to 98.94 as of 12:39 p.m. Tokyo time, with three equities declining for every two that advanced. U.S. gasoline demand usually peaks in June through August as motorists take to the roads for the summer holidays. Motor fuel consumption over the past four weeks was down 1.4 percent from the same period last year, the Energy Department said on July 8. Gasoline for August delivery was at $1.6404 a gallon, down 1.01 cents, on the Nymex at 2:23 p.m. Singapore time. It fell 0.8 percent to $1.6505 a gallon on July 10. “The U.S. summer driving season has been a non-event for two years in a row now,” Purvin & Gertz’s Shum said. “The path of least resistance is still down for oil prices.” Brent crude for August settlement fell as much as 82 cents, or 1.4 percent, to $59.70 a barrel on London’s ICE Futures Europe exchange and was at $59.76 at 2:31 p.m. Singapore time. Nigeria Attack The Atlas Cove oil jetty and depot in Nigeria’s Lagos state was on fire after an attack late yesterday, the Movement for the Emancipation of the Niger Delta said in an e-mailed statement. Rebels claimed to have blown up a pipeline to Chevron Corp.’s export terminal in Nigeria’s Delta state on July 10. Attacks on the country’s pipelines and export terminals have cut output by 1.4 million barrels a day, the IEA said on July 10. Hedge-fund managers and other large speculators decreased their net-long position in New York crude-oil futures in the week ended July 7, according to U.S. Commodity Futures Trading Commission data. Speculative long positions, or bets prices will rise, outnumbered short positions by 15,357 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 25,420 contracts, or 62 percent, from a week earlier.

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