Oil declined for a fifth day in New York, matching the longest losing streak since August, as U.S. crude stockpiles increased more-than-estimated and gasoline consumption fell to a 10-year low.

Futures were down as much as 0.6 percent after settling yesterday at the lowest close in six weeks. Crude supplies rose by 4.2 million barrels last week, figures from the Energy Department showed. They were projected to increase 2.6 million barrels, according to a Bloomberg News survey. Oil rose earlier yesterday after manufacturing indexes from Germany to the U.S. increased.

“It appears to be driven by U.S. domestic factors, the larger-than-expected increase in crude stockpiles and fall in gasoline demand,” said Ric Spooner, chief analyst at CMC Markets in Sydney. “In the short-term, it flies in the face of the run of reasonably positive data from the U.S.”

Crude for March delivery slipped as much as 54 cents to $97.07 a barrel in electronic trading on the New York Mercantile Exchange and was $97.56 at 9:10 a.m. Singapore time. The contract yesterday fell 0.9 percent to $97.61 a barrel, the lowest since Dec. 20. Prices are down 1.5 percent this year.

Brent oil for March settlement gained 58 cents, or 0.5 percent, to $111.56 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s premium to West Texas Intermediate futures was at $13.95, compared with a record spread of $27.88 on Oct. 14.

Fuel Supplies

Gasoline consumption decreased to 7.97 million barrels a day, the lowest since September 2001, according to Energy Department data. Stockpiles of the fuel increased 3.02 million barrels last week, the report showed. They were projected to rise 500,000 barrels, according to the median of 12 analyst estimates in the Bloomberg News survey.

Distillate inventories, a category that includes heating oil and diesel, dropped by 135,000 barrels, figures from the Energy Department showed. They were estimated to decline 1.35 million barrels, according to the survey.

Oil initially climbed yesterday in New York after data from the Institute for Supply Management showed manufacturing in the U.S. grew in January at the fastest pace in seven months. The Tempe, Arizona-based group’s manufacturing index rose to 54.1 from 53.1 in December. The median forecast of economists surveyed by Bloomberg News was 54.5.

“Oil futures were a mixed bag, despite being encouraged by the unexpected rise in global manufacturing activity early in the session,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. The inventory data “showed a substantially larger than expected increase in crude stocks.”

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: Mike Anderson in Singapore at manderson34@bloomberg.net.

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