Oct. 20 (Bloomberg) -- Crude oil fell for a third day and gasoline traded at its lowest in three months as production recovered from damage caused by Hurricanes Katrina and Rita.

U.S. oil inventories rose 1.8 percent last week, more than double the increase predicted by a Bloomberg survey of analysts. Production gained 6.3 percent as companies repaired storm-damaged platforms and pipelines in the Gulf of Mexico. Imports also increased, the Energy Department said yesterday in a report.

``The report was a big surprise,'' said Dariusz Kowalczyk, senior investment strategist at CFC Seymour Ltd. in Hong Kong. ``Crude oil seems very ample.''

Crude oil for November delivery fell as much as 61 cents, or 1 percent, to $61.80 a barrel in after-hours electronic trading on the New York Mercantile Exchange. The contract, which expires today, traded at $62.19 at 9:11 a.m. London time. Prices have fallen about 12 percent since reaching a record $70.85 on Aug. 30, the day after Katrina struck.

The more actively traded December contract fell 13 cents to $61.38 a barrel. Gasoline for November dropped as much as 0.7 percent to $1.6650 a gallon, the lowest since July 18.

Hurricane Wilma, rated Category 4 on the five-step scale of storm intensity, is forecast to head northeast, away from major producing regions, after it enters the Gulf of Mexico tomorrow, the National Hurricane Center said. The storm is forecast to hit Florida the following day.

Evacuating Rigs

BP Plc and Transocean Inc., the world's biggest offshore oil driller, said they were evacuating some non-essential staff from rigs and platforms in the Gulf as a precautionary measure as Hurricane Wilma may approach. Other oil companies said they were monitoring the situation and didn't plan any evacuations.

Oil companies ``have got to be ready in case this thing changes direction like Katrina did,'' Chris Mennis, owner of New Wave Energy in Aptos, California, said. ``You've got to watch these things minute by minute. Nobody will be going short into the weekend.''

Gasoline prices plunged yesterday after the U.S. Energy Department report showed supplies of the motor fuel rose 1.5 percent, or 2.9 million barrels. A decline of 1.5 million barrels was forecast in a Bloomberg survey of analysts. Output jumped 8.3 percent as plants, shut by Hurricanes Rita and Katrina, restarted.

Wilma's eye was 215 miles (344 kilometers) southeast of Cozumel, Mexico, according to the latest hurricane center advisory. The system was moving between west and west-northwest at about 8 mph. It may become a Category 5 storm later today, according to the hurricane center at 2 a.m. New York time.

Gasoline Imports

U.S. gasoline imports surged 7.7 percent to an average 1.5 million barrels a day, the highest on record.

Heating oil for November delivery fell $1.24, or 0.7 percent, to $1.9010 in after-hours trading. It fell 2.08, or 1.1 percent, to $1.9134 yesterday, the lowest close since Sept. 16.

Supplies of distillate fuel, a category that includes heating oil and diesel, fell 1.92 million barrels to 122.7 million, less than the 2.3 million barrel decline forecast.

China's economy expanded faster than expected in the third quarter as consumers spent more and investment in coal mines and railways increased. China is the world's second-largest oil user.

Gross domestic product rose 9.4 percent from a year earlier after climbing 9.5 percent in the second quarter, the National Bureau of Statistics said in Beijing. That beat the median 9.2 percent gain forecast in a Bloomberg survey of 17 economists.

To contact the reporter on this story: Gavin Evans in Wellington, New Zealand at gavinevans@bloomberg.net

Last Updated: October 20, 2005 04:28 EDT