The price of U.S. crude oil fell to a two-month low on Wednesday after a U.S. government report showed crude inventories rose much more than expected, but later pared many of its losses. The U.S. Energy Information Administration report showed crude inventories rose 4.11 million barrels last week, outpacing a forecast for a build of 200,000 barrels. Gasoline inventories were 2.27 million barrels higher, at odds with forecasts of a small drawdown. Distillate stocks increased by a higher than expected 1.76 million barrels. "Crummy numbers, builds across the board. It's probably reflective of the economy. The broad economic data has been fairly weak in the last month to two months," Mark Kellstrom of Strategic Energy Research & Capital in Summit, New Jersey, said. U.S. crude for October delivery was down 7 cents on the day to $71.56 a barrel by 1608 GMT, after earlier falling to as low as $70.76, the lowest price since early June. October ICE Brent rose 20 cents to $73.11 a barrel. Oil was also under pressure from data showing new U.S. single-family home sales slumped to the slowest pace on record in July and orders for costly durable goods were weak, heightening fears the economy was at risk of a new downturn. A drop in the S&P 500 U.S. equity index also hit oil. Analysts say that U.S. oil is strongly positively correlated with the S&P. -- SPA
