By Claudia Assis and Nick Godt, MarketWatch SAN FRANCISCO (MarketWatch) -- Crude-oil futures reversed lower after a Department of Energy report showed a decline in oil inventories as expected but data on other energy products were seen as bearish. Prices had inched higher earlier Wednesday as disappointing jobs data weighed against a report showing that manufacturing in the Chicago area remained at high levels. Crude for August delivery declined 30 cents, or 0.4%, to $75.66 a barrel on the New York Mercantile Exchange. The Energy Information Administration said Wednesday crude oil inventories dropped 2 million barrels on the week ended June 25, at the top of the range of expectations. Gasoline stocks rose 500,000 barrels, and stocks of distillates, which include heating oil and diesel, rose 2.5 million. Refineries run at 86.9% of their capacity, a decline of 0.3% from the previous week. Overall, total petroleum products inventories rose 3.6 million barrels and total demand fell 500,000 barrels, "a bearish combination," said Tim Evans, an analyst with Citi Futures Perspective in a note to clients. Crude-oil futures had opened lower Wednesday, but ticked higher as a report showed that manufacturing in the Chicago area slipped a tad in June but held steady at expanding levels. The Chicago purchasing managing index declined to 59.1 in June from 59.7 in May. Readings above 50% indicate overall business expansion. Earlier Wednesday, payroll processor ADP said private-sector employment increased by 13,000 in June. Economists surveyed by MarketWatch had been expecting an increase of 65,000. Read more about the ADP report. Reformulated gasoline for July delivery also reversed to losses, losing a penny, or 0.3%, to $2.07 a gallon. Heating oil for July delivery retreated 2 cents, or 0.9%, to $2 a gallon. Natural gas for kept above water, with the August contract advancing 5 cents, or 1%, to $4.59 per million British thermal units. Meanwhile, Hurricane Alex, which strengthened overnight from a tropical storm, is heading for the coastline near the Texas-Mexico border, but its path is likely to miss most oil and gas installations in the area. Landfall is expected late Wednesday or early Thursday. Read more about Hurricane Alex. Several energy companies have reported evacuations ahead of Alex. BP PLC (BP 28.56, +0.89, +3.22%) has warned the storm could hinder efforts to increase the volume of oil from its blown Macondo field some 40 miles off the coast of Louisiana. On Tuesday, crude sank 3% as a drop in U.S. consumer confidence and a downward revision in a leading Chinese economic indicator sparked a broad market selloff.

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