* U.S. crude stocks post bigger-than-expected increase
* U.S. refinery utilization rate very low
* NYMEX makes biggest gain since September on Tuesday
(Recasts, updates prices, market activity to settlement; adds
further comment)
By Edward McAllister
NEW YORK, Feb 3 (Reuters) - Oil fell below $77 a barrel on
Wednesday after U.S. data showed a rise in crude inventories,
raising concerns about continued flagging demand in the world's
largest energy consumer.
U.S. crude for March delivery <CLc1> fell 25 cents to
settle at $76.98 a barrel. London ICE Brent crude <LCOc1> fell
14 cents to settle at $75.92 a barrel.
U.S. commercial stockpiles of crude jumped by 2.3 million
barrels last week, far surpassing analysts' forecasts for a
200,000 barrel increase, the Energy Information Administration
(EIA) said on Wednesday. []
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 crude build is particularly bearish in light of
poor demand. Total products demand in the four weeks to Jan. 29
was down from a year ago and that's very disappointing," said
Andy Lebow, broker at MF Global in New York.
U.S. refinery utilization rates were off 0.8 percentage
points at 77.7 percent of capacity last week -- their lowest
level since 1990 barring hurricane disruptions.
Gasoline prices, however, rose 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 tighten regulations on the financial sector.[]
The dollar rose against the euro as mounting worries about
Portugal's economy weighed on the euro. 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. []
(Additional reporting by Chris Doering, Robert Gibbons and
Gene Ramos in New York and Chris Baldwin and Christopher
Johnson in London; Editing by David Gregorio)
