Oil set for first monthly drop

West Texas Intermediate was poised for its first monthly decline since October. US crude stockpiles rose less than forecast, and fuel demand increased in the world's biggest oil consumer.

Futures fluctuated as equities advanced on stronger-thanestimated U.S. economic data. Oil supplies climbed 1.1 million barrels last week, data from the Energy Information Administration showed. They were expected to rise by 2.5 million, according to a survey of analysts. U.S. fuel consumption averaged 18.5 million barrels a day over the past four weeks, up 2 percent from 2012, according to the report.

"The EIA delivered a mixed set of U.S. fuel inventory numbers," said Andrey Kryuchenkov, an analyst at VTB Capital in London who predicts that WTI will trade from $90 to $94.70 a barrel next month. "We are in the refinery maintenance season, when demand slackens."

WTI for April delivery was down 19 cents at $92.57 a barrel in electronic trading on the New York Mercantile Exchange as of 9:39 a.m. in London. The volume of all futures traded was 20 percent below the 100-day average. The contract is down 5.1 percent this month, the first time since 2006 it has fallen in February. Brent oil for April settlement on the London-based ICE Futures Europe exchange advanced 27 cents to $112.14 a barrel. Volumes were about 121 percent of the 100-day average. The European benchmark grade was at a premium of $19.54 to WTI futures, compared with $19.11 yesterday.

US gasoline stockpiles dropped 1.9 million barrels last week, the EIA report showed. They were projected to decline by 1 million, according to the median estimate of 10 analysts surveyed by Bloomberg. Distillate inventories, including heating oil and diesel, increased 557,000 barrels, the data showed. Supplies were expected to decrease by 1.55 million.

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