Crude: +1.2 (vs. +1.2 fcst)
Gasoline: +6.8 (vs. +1.2 fcst)
Distillate: +3.6 (vs. -1.8 fcst)
LONDON (Reuters) - Oil fell to its lowest level this year on Wednesday, dipping below $80 a barrel after an industry report showed rising U.S. distillate inventories, despite the severe northern hemisphere winter.
The American Petroleum Institute (API) said in its weekly report late on Tuesday distillate stocks -- which include heating oil and diesel -- rose by 3.6 million barrels last week. Expectations had been for a 1.8 million barrel fall.
On top of higher U.S. distillate inventories, crude and gasoline stockpiles in the world's largest energy consumer also rose last week, the API said. Gasoline inventories soared by 6.8 million barrels, far surpassing expectations for a 1.2 million barrel build. Crude stocks rose by 1.2 million barrels, matching analysts predictions.
"We cannot recall when the aggregated inventories rose 11.6 million barrels before," said Dennis Gartman, a financial markets commentator. "The market is clearly concerned and confused."
Stocks of crude and oil products have bulged in the United States over the past 18-months as the economic crisis has cut the demand for energy.
Very cold weather over the last two weeks was expected to have helped to draw down inflated inventories. Warmer weather across the central and eastern United States is expected to arrive in the next few days, DTN Meteorlogic said, reducing heating demand.