* EIA: Crude, refined product supplies up last week

* Dollar rises amid warning of fragile recovery

NEW YORK, Nov 12 (Reuters) - U.S. crude futures settled
nearly 3 percent lower on Thursday as government data confirmed
an industry report earlier this week that domestic crude and
refined product inventories rose last week.

On product futures, heating oil fell more than 3 percent,
taking the brunt as data went against forecasts for a drawdown
in distillates, which include heating oil and diesel fuel.

Gasoline futures ended down more than 2 percent.

"The EIA report showing refinery utilization is down to
79.9 percent of capacity is a sign of very poor refinery demand
for oil," said Phil Flynn, analyst at PFGBest Research in
Chicago. "Crude futures are down on the strong dollar and as
the market's anticipation that the API data earlier this week
would be confirmed by the EIA report proved to be correct."

The dollar rose after data showed jobless benefit claims
were lower than expected, prompting currency traders to
initially buy the dollar against the yen. Later, warnings that
the global economic recovery was fragile prompted investors to
square up positions. [USD/]

The stronger dollar weighed on Wall Street's commodity
shares, threatening to snap a six-day winning streak for the
the Dow Jones Industrials Average .DJI. [.N]

PRICES

* On the New York Mercantile Exchange, December crude
CLZ9 settled down $2.34, or 2.95 percent, at $76.94 a barrel,
trading from $76.56 to $79.69.

* In London, December Brent crude LCOZ9 ended down $1.93,
or 2.48 percent, at $76.02 a barrel, trading from $75.63 to
$78.26.

* NYMEX December RBOB RBZ9 settled down 5.22 cents, or
2.62 percent, at $1.9405 a gallon, trading from $1.9214 to
$2.0058.

* NYMEX December heating oil HOZ9 ended down 6.48 cents,
or 3.15 percent, at $1.9910 a gallon, trading from $1.9796 to
$2.0606.

* The December/December RBOB crack spread <0#RB-CL=R> ended
at $4.56, rising from $4.41 on Wednesday. The December/December
heating oil crack spread <0#CL-HO=R> ended at $6.68, dropping
from $7.06 on Wednesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $13.99,
widening from $12.96 on Wednesday. The December 2014 contract
settled Thursday at $90.93, down $1.31, or 1.42 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $78.72/$79.21

Technical support/resistance:

NYMEX crude: $77.92/$81.00

NYMEX heating oil: $2.0090/$2.10

NYMEX RBOB: $1.95/$2.00

For a full report on technicals, click on [ID:nLC471463]

MARKET NEWS

* Domestic crude inventories rose 1.8 million barrels to
337.7 million barrels in the week to Nov. 6, EIA data showed.
That's slightly less than the API's report of a 1.2 million
barrel increase but far greater than the forecast for just a
600,000 barrel build in a Reuters poll. [EIA/S]

* Stocks at the NYMEX delivery point at Cushing, Oklahoma,
rose 1.5 million barrels to 17 million barrels.

* Distillate stocks rose 300,000 barrels to 167.7 million
barrels, lower than the API's report of a 640,000 barrel build
but against the forecast for a 700,000 barrel decline.

* Gasoline stocks rose 2.5 million barrels to 210.8 million
barrels, nearly twice the API's 1.4 million barrel build, but
against the forecast for stocks to have been unchanged.

* Refinery utilization fell 0.7 percentage point, to 79.9
percent of capacity, the lowest since utilization logged in at
72.3 percent of capacity in the week to Sept. 26, 2008.

* Mexico reopened three of its main oil exporting ports in
the Gulf of Mexico on Thursday, after they were closed due to
bad weather. [ID:nN12416973]

* Fourth-quarter world oil demand will be higher than the
year-ago period, the first time demand has risen year-on-year
since the second quarter of 2008, the International Energy
Agency said on Thursday. [ID:nLC090947]

* The U.S. government said 2.2 percent of the Gulf of
Mexico's oil production and 2.7 percent of its natural gas
output still shut Thursday due to storm Ida. [ID:nN12425756]

* The Louisiana Offshore Oil Port said Thursday it had
resumed tanker unloading, after rough seas had forced it to
stop on Sunday, ahead of Tropical Storm Ida. [ID:nN12101490]
(Reporting by Gene Ramos and Robert Gibbons; Editing by
Marguerita Choy)