U.S. crude oil futures fell back in post-settlement trading on Tuesday after industry data showed a huge increase in crude inventories last week, contrary to analysts' forecasts that supplies fell. NYMEX natural gas futures also ended lower, pressured by a soft crude market, mild Midwest weather and concerns about record high storage and weak industrial demand despite slightly firmer physical prices.

IN FOCUS:

The American Petroleum Institute said that domestic crude stocks rose 1.4 million barrels last week as imports increased.

Beijing has approved the expansion of the Aoshan strategic crude oil reserve base in eastern China by adding 18.9 million barrels in storage capacity. China will trim retail fuel prices by a modest 3 percent after two big increases last month.

Shell Pipeline Co said it was working to control a Eugene Island crude oil pipeline leak in the Gulf of Mexico. ? Abu Dhabi will keep its crude oil supplies to Asian refiners unchanged in September, the state oil firm said on Tuesday, maintaining deep cuts to support prices.

World oil consumption will rise for the first time in two years in 2010 as a recovery in the global economy boosts demand,according to a poll earlier this week, but the expected increase is unlikely to drain excess supplies.

FUNDAMENTAL OUTLOOK:

Crude oil prices may trade sideways to down as CFTC chairman Gary Gensler said the U.S. “must seriously consider” strict position limits on energy markets to curb speculation which may result in some more long liquidation.