* U.S. crude stocks post bigger-than-expected increase
* U.S. refinery utilization rate very low
* NYMEX makes biggest gain since September on Tuesday
(Updates prices, recasts)
NEW YORK, Feb 3 (Reuters) - Oil fell to $77 a barrel in
choppy trade on Wednesday after U.S. data showed a rise in
crude inventories in the world's largest energy consumer, while
product stocks dropped.
U.S. crude for March delivery <CLc1> fell 23 cents to $77 a
barrel by 2:13 p.m. EST (1913 GMT). London ICE Brent crude
<LCOc1> fell 23 cents to $75.83 a barrel.
U.S. commercial stockpiles of crude jumped by 2.3 million
barrels to 329 million barrels in the week to Jan. 29, far
surpassing analysts' forecasts for a 200,000 barrel increase,
the Energy Information Administration (EIA) said. []
The numbers confirmed Tuesday's data from trade group
American Petroleum Institute, showing national crude oil
inventories up a whopping 4.7 million barrels.
"The EIA data is bearish as the big inventory increase
shows that demand is still poor. With refinery utilization at a
very low level, refineries are having a hard time as demand
just isn't there," said Phil Flynn, analyst at PFGBest Research
in Chicago.
U.S. refinery utilization rates were off 0.8 percentage
point at 77.7 percent of capacity last week -- their lowest
level since 1990 barring hurricane disruptions.
Gasoline prices, however, rose to near two-week highs after
a reported 1.2-million-barrel decline.
"The gasoline draw was counter-seasonal and looks
supportive," said Jim Ritterbusch, president of Ritterbusch &
Associates in Galena, Illinois.
Investors have looked to wider economic data over the past
year for signs of economic recovery and a potential rebound in
energy demand.
On Wall Street, U.S. stocks fell after President Barack
Obama reiterated his commitment to overhaul the healthcare
system and impose stricter regulatory reforms on Wall Street.
[]
The dollar rebounded, rising against a basket of major
currencies. A stronger greenback makes commodities priced in
dollars more expensive for those holding other currencies.
[]
Analysts also are keeping a close watch on Iran. The
world's fifth-largest oil exporter said it had launched a
domestically made satellite-carrier rocket carrying live
animals into low-Earth orbit, a move that may fan concern about
Tehran's nuclear intentions. []
Western powers accuse Iran of trying to develop nuclear
weapons under a civilian enrichment programme that Tehran says
will fuel a future network of nuclear power plants that will
free up domestic oil and gas for export.
In a report late on Tuesday, the American Petroleum
Institute said U.S. crude stocks jumped by 4.7 million barrels
last week. That compared with an average forecast gain of
200,000-barrel in a Reuters poll. []
(Reporting by Edward McAllister, Chris Doering, Robert Gibbons
and Gene Ramos in New York and Chris Baldwin and Christopher
Johnson in London; Editing by David Gregorio)
