Oil fell in New York as investors speculated that demand will falter amid increasing U.S. crude stockpiles in the world’s biggest consumer of the commodity. London-traded Brent’s premium to the U.S. contract widened. Futures slipped as much as 0.7 percent after the American Petroleum Institute said supplies rose 2.57 million barrels last week. An Energy Department report today is forecast to show they fell 1.3 million barrels. Brent oil erased its decline after a report showed an improvement in the economic outlook for China, the world’s second-biggest crude consumer. “API data were mixed-to-negative in our opinion,” Tom Pawlicki, a Chicago-based analyst at MF Global Holdings Ltd., said in a note today. “Energy prices are expected to trade in a mixed-to-lower direction in the near-term.” Crude for November delivery slipped as much as 60 cents to $86.32 a barrel in electronic trading on the New York Mercantile Exchange and was at $86.84 at 2 p.m. Sydney time. The contract yesterday advanced $1.11, or 1.3 percent, to $86.92. Prices are 18 percent higher the past year. Brent oil for November settlement was at $110.55 a barrel, up 1 cent, on the London-based ICE Futures Europe Exchange. The European benchmark contract’s premium to U.S. futures widened to $23.71 after closing at $23.62 yesterday. The difference settled at a record $26.87 on Sept. 6. U.S. Stockpiles U.S. gasoline stockpiles climbed 62,000 barrels last week, the American Petroleum Institute data showed. The Energy Department report will probably show inventories increased 1.35 million barrels, according to the median of 16 analyst estimates in the Bloomberg News survey. The industry-funded API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey. Oil pared declines after the Conference Board said today that a preliminary measure of its July leading indicator for China rose, signaling the nation is withstanding the global slowdown. The International Monetary Fund yesterday cut its forecast for China’s growth this year to 9.5 percent from 9.6 percent projected in June. The Washington-based lender said the U.S. economy will expand 1.5 percent, down from 2.5 percent. Brent is the benchmark for more than half of the world’s oil. The premium to New York oil has widened amid disruptions to production. The first North Sea Forties crude cargo for October loading was deferred and a third September shipment was delayed to next month, according to a revised export program obtained by Bloomberg News. Forties is one of four North Sea crude grades used to price Dated Brent. Libyan Exports The price of Brent will drop in the fourth quarter as global demand slows and production increases in Libya and the North Sea, Bank of America Corp. said in a note dated Sept. 19. It will average $102 a barrel in the three months ended Dec. 31, said New York-based commodity strategist Francisco Blanch. Libya’s Arabian Gulf Oil Co. will be ready to export 1 million barrels of crude within one week as its marketing department evaluates several offers for shipments, company official Hassan Bolifa said yesterday. Fighting in the African nation since February has reduced the availability of light, sweet crude, or oil with low density and sulfur content. The country’s output fell to 45,000 barrels a day last month, according to Bloomberg estimates, compared with the 1.6 million barrels a day the nation pumped in January. To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

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