Oil falls below $70 after surging overnight

       Oil prices fell below $70 a barrel yesterday after surging overnight on signs US gasoline demand may be improving. Weaker equity markets and gains by the dollar helped push down oil prices.
       Benchmark crude for November deliver was down 72 cents at $69.89 by late afternoon in Singapore in electronic trading on the New York Mercantile Exchange.
       The contract jumped $3.90 to settle at $70.61 on Wednesday after the Energy Information Administration said US gasoline stockpiles unexpectedly dropped 1.6 million barrels last week from the previous week.
       Analysts had expected a jump of 1.2 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
       The EIA also said demand for gasoline over the four weeks ended Sept 25 was 5.4% higher than last year.
       "Gasoline demand continues to improve," Barclays Capital said in a report."We see the global market adjustment as remaining on track for a slow and steady soft landing for both prices and quantities.'
       Barclays said it expects crude to average $76 a barrel in the fourth quarter and $85 next year.
       Other inventory data was less encour-aging. Crude supplies grew more than expected last week, according to the government report, and they have now swelled to 11.4% above what they were last year.
       Analysts said a multitude of US economic data to be released yesterday and today _weekly jobless claims, pending home sales, construction spending, auto sales and non-farm payroll data, among others _could push and pull on prices.'We are not ready to have a conviction in any trends,' said Olivier Jakob of Petromatrix in Switzerland. 'Further violent moves can be expected but the recent ranges are likely to remain respected."
       In other Nymex trading, gasoline for November delivery fell 1.97 cents to $1.7319 a gallon, and heating oil lost 2.23 cents to $1.8101 a gallon. Natural gas retreated 7.2 cents to $4.769 per 1,000 cubic feet.
       In London, Brent crude fell 77 cents to $68.30 on the ICE Futures exchange.
       Also on Wednesday, energy traders digested official data that showed a jump in US crude stockpiles last week, implying stronger demand and also boosting prices.
       "Oil prices rose sharply to end above $70 a barrel after the US GDP report showed more signs of recovery in the US," analysts from Singapore's United Overseas Bank said in a report.