--Oil futures fall on massive 9 million-barrel increase in U.S. crude stockpiles --Nymex crude recently down 2.7% to $101.14/bbl --EIA data shows largest stockpile increase since August 2008 By Jerry A. DiColo Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Crude futures tumbled Wednesday after a government data showed U.S. oil stockpiles rose by 9 million barrels, the largest weekly increase in more than three years. The report, which topped analysts' estimates calling for a 1.9 million-barrel increase, comes amid a surge in U.S. production that is forcing traders to refocus on the supply picture after Iran tensions drove market action for much of the year. "It's been eerily quiet from the Iranians, and that fear has subsided," said Stephen Schork, head of energy-trading adviser Schork Group. "We've gotten massive builds over the past few weeks...there is plenty of oil." Light, sweet crude for May delivery recently traded $2.87, or 2.7%, lower at $101.14 a barrel on the New York Mercantile Exchange, the lowest since Feb. 16. Brent crude on the ICE Futures exchange traded $1.88 lower at $122.98 a barrel. The U.S. Energy Information Administration said Wednesday that oil stockpiles rose to 362.4 million barrels in the week ended March 30, the highest level since last June. U.S. production rose above 6 million barrels a day and is 7.3% higher than the same week last year. Additionally, implied demand for fuel products in the U.S. is 4.7% lower than last year. Crude prices have dropped from recent highs over the past month, falling from above $110 a barrel in early March on a pause in the heated rhetoric between Iran and the West over economic sanctions. Investors are also concerned that the high price of diesel and gasoline could crimp the economic recovery or at least cut fuel usage. Retail U.S. gasoline prices rose to $3.941 a gallon, the EIA said Monday, the highest price since May 16, 2011. Prices have risen by 55.2 cents over the past 10 weeks. With the latest increase in U.S. stockpiles, traders are likely to refocus on supply and demand after fears about military action in the Persian Gulf dominated the oil market in recent weeks. "Perhaps we've reached a tipping point where this has permeated the skulls of even the most stubborn," said Tim Evans, energy analyst at Citi Futures Perspective. Still, analysts are skeptical that crude futures will drop below the key $100 level for any length of time. Tensions surrounding Iran's nuclear program remain, and any loss of Iran's 3.5 million barrels a day of oil production should send prices higher. "Geopolitics is serving as a price floor at the moment," said Dominick Chirichella, analyst at the Energy Management Institute, in a client note. Front-month May reformulated gasoline blendstock, or RBOB, recently traded 5.64 cents lower at $3.3390 a gallon. May heating oil recently traded 4.67 cents lower at $3.1808 a gallon. -By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com.

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