Oct. 13 (Bloomberg) -- Crude oil traded near $82 a barrel after falling for a second day in New York on speculation that U.S. inventories increased to a three-month high last week. The price of oil dropped yesterday amid signs that OPEC will leave production targets unchanged and before a U.S. Energy Department report that may show a gain of 1.4 million barrels to 362.3 million, according to the median estimate of 17 analysts in a Bloomberg News survey. Saudi Arabian Oil Minister Ali al-Naimi, whose country is the largest OPEC producer, called the global market "well-balanced" earlier this week. "There is demand, but it remains relatively tepid," Ben Westmore, minerals and energy economist at National Australia Bank Ltd. in Melbourne, said by phone today. "Then couple that with the fact that stocks of oil are still at very high levels, so I think the fundamental situation looks pretty weak." Crude oil for November delivery was at $81.83 a barrel, up 16 cents, on the New York Mercantile Exchange at 11:00 a.m. Sydney time. The contract, which reached a five-month high of $84.43 last week, declined 0.7 percent yesterday to $81.67. Brent crude for November settlement on the London-based ICE Futures Europe exchange fell 22 cents, or 0.3 percent, yesterday to $83.50 a barrel. The Energy Department is scheduled to release last week's petroleum data tomorrow at 11 a.m. in Washington, a day later than usual because of the Columbus Day holiday. The industry-funded American Petroleum Institute will report its numbers today. Inventories Rising Crude inventories rose 0.9 percent to 360.9 million barrels in the week ended Oct. 1, the Energy Department reported last week. Total petroleum supplies were 1.14 billion barrels, 0.4 percent below a record set Sept. 17. Fuel consumption dropped 6.4 percent to 18.5 million barrels a day Oct. 1, the biggest weekly decline since Feb. 27, 2004, according to the department. Oil ministers from the Organization of Petroleum Exporting Countries, gathering in Vienna this week, signaled they won't alter their existing output targets. OPEC raised its forecast for 2010 global oil demand by 100,000 barrels a day to 85.59 million. That compares with 84.46 million last year. World consumption is forecast to rise 1.2 percent to 86.64 million barrels a day next year, OPEC said. "Traders are reducing their positions, waiting for the OPEC meeting," said Richard Ilczyszyn, a market strategist at Lind-Waldock, a broker in Chicago. Saudi Arabia's al-Naimi said Oct. 11 that oil prices between $70 and $80 a barrel are "ideal." OPEC has raised output by 5 percent from a five-year low reached in March 2009 and now exceeds its own target by 1.9 million barrels a day. Production was 29.1 million barrels a day last month, based on Bloomberg News estimates. Oil demand will grow by 1.5 million barrels a day this year and 1.4 million in 2011, Sandrine Toerstad, head of market analysis at Statoil ASA, Norway's biggest oil and gas producer, said in a presentation in Oslo yesterday. Supply from non-OPEC countries is forecast to grow 925,000 barrels a day this year and 100,000 in 2011, Toerstad said. --With assistance from Rachel Graham in London. Editors: John Viljoen, Clyde Russell.

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