* EIA reports larger-than-expected crude build
* Gasoline demand increases offset crude losses
* Dollar gains after Fitch cuts Portugal rating
* Coming up: Weekly jobless claims, Cushing inventory data
on Thursday morning
(Recasts, updates with settlement prices)
By Rebekah Kebede
NEW YORK, March 24 (Reuters) - Oil fell more than $1 a
barrel on Wednesday, weighed down by a larger-than-expected
rise in crude stocks and a stronger U.S. dollar.
U.S. crude oil futures for May <CLc1> settled at $80.61 a
barrel, down $1.30.
Crude touched a session low of $79.88 a barrel after the
U.S. Energy Information Administration (EIA) reported a bigger
jump in crude inventories than the market expected. But
positive gasoline demand data helped stem the price decline.
Crude futures have traded between $69 and $84 this year.
London ICE Brent <LCOc1> for May settled at $79.62, down
$1.08 after earlier dipping to a low of $78.90.
U.S. crude stockpiles jumped 7.3 million barrels in the
week ended March 19, the EIA said, in line with a 7.5 million
barrel build reported by the American Petroleum Institute (API)
on Tuesday. <API/S> <EIA/S>
"The EIA data essentially mirrors that of API, with
gasoline being the exception. Larger-than-expected builds in
crude oil reduced prices, not to ashes, but to $80," said Jay
Levine of enerjay LLC, based in Portland, Maine.
Brad Samples at Summit Energy said the build mostly came
from imports, noting that refineries could process more oil as
the U.S. driving season got underway.
"The big build all comes from imports, which rose to their
highest level since September, 2009," he said.
"Refinery utilization rates have been rising along with
import levels, and the rise will probably continue as we head
toward the (U.S.) driving season. We've been eating away at
gasoline stocks," he added.
The EIA said gasoline stocks fell 2.7 million barrels,
more than the 1.3 million forecast in a Reuters poll of
analysts.
AT HOME IN THE RANGE?
Some analysts said the market was watching the dollar and
European economies and was unable to take a fundamental spur to
break out of current ranges.
"The market is so entrenched in this trading range --
$77.50 on the downside and $83.50 on the upside -- that no one
is really interested in taking a position either way. Traders
have their minds on other markets such as the U.S. dollar and
the whole European quagmire," Mike Zarembski at Optionsxpress
in Chicago said.
The dollar rose against the euro after Fitch Ratings cut
Portugal's sovereign credit rating one notch to AA-, putting
further pressure on the single currency. []
Data in the euro zone painted a mixed picture on the
economy, with manufacturing activity growing in March at its
highest level since the end of 2006 [] but
industrial orders in January falling, underscoring the
fragility of the economic recovery. []
(Additional reporting by Eileen Moustakis, Joshua Schneyer,
Robert Gibbons and Gene Ramos in New York, Jo Winterbottom in
London; Editing by David Gregorio)
