Oil falls on high inventories

Crude prices fell on Thursday as U.S. crude inventories rose more than expected last week and China 's trade data showed declining oil import in September. The U.S. Energy Information Administration's weekly inventories report sent mixed signals as it showed U.S. crude inventories increased 1.34 million barrels in the week ended Oct. 7, more than analysts' estimates, while gasoline stocks fell sharply by 4.1 million barrels. China's trade surplus fell for the second straight month in September, dropping 12.4 percent compared to the same period last year, according to China's customs data. China's oil import also declined sharply, weighing on the crude markets. More pressure came from concerns about the European debt crisis as the European Central Bank said forcing private bondholders to take losses on sovereign debt could damage the euro's reputation and hurt the region's banks. Light, sweet crude for November delivery dropped 1.34 dollars, or 1.59 percent to settle at 84.23 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for November delivery edged down 25 cents, or 0.22 percent to close at 111.11 dollars a barrel.