Oil fell for the first time in three days Thursday as U.S. inventories gained and borrowing costs in France rose, adding to concern that Europe will struggle to contain the debt crisis.
Oil dropped 1.4%, slipping $1.49 U.S. in the last 40 minutes of floor trading, after the U.S. Energy Department said supplies rose 2.21 million barrels last week. Futures ended above $100 U.S. for a third day on concern that sanctions against Iran will curb supplies.
Crude for February delivery fell $1.41, or 1.4%, to $101.81 U.S. a barrel on the New York Mercantile Exchange. Prices have gained 28% in three months.
Brent oil for February lost 96 cents, or 0.8 percent, to settle at $112.74 U.S. a barrel on the London-based ICE Futures Europe exchange.
Oil stockpiles increased to 329.7 million barrels, the Energy Department report showed. Analysts surveyed by Bloomberg expected a decline of one million barrels. Total petroleum demand fell 2.6% to 18 million barrels a day. Inventories at Cushing, Oklahoma, the delivery point for futures traded on the Nymex, dropped to 29.3 million barrels, a two-year low.
Gasoline inventories rose 2.48 million barrels to 220.2 million. Distillate fuels, which include diesel and heating oil, gained 3.22 million to 143.6 million. Gains of one million barrels were expected for both.
