U.S. crude futures drop $2, inventories build

NEW YORK, Nov 12 (Reuters) - U.S. crude oil futures fell $2 on Thursday on the stronger dollar and just ahead of a government oil inventory report that showed crude oil stocks rose more than expected last week.

The inventory report showed gasoline and distillate supplies also rose, against expectations that gasoline inventories would be flat and distillate supplies slightly lower.

On the New York Mercantile Exchange at 11:05 a.m. EST (1605 GMT), December crude CLZ9 was down $1.92, or 1.42 percent, at $77.36 a barrel, trading from $76.84 to $79.69. (Reporting by Robert Gibbons)