NYMEX crude futures fell by more than $1 a barrel on Wednesday to below $80,after an industry group reported an unexpected increase in US distillate inventories,adding to growing supplies of gasoline and crude. US crude for delivery in February fell as much as $1.01 a barrel and was trading down 94 cents at $79.85 a barrel by 0157 GMT. London February crude futures shed 88 cents to $78.42 a barrel. US distillate stockpiles rose by 3.6 million barrels the week ended January 8,the American Petroleum Institute said on Tuesday. Oil also fell after China surprised world markets by raising banks' reserve requirements,raising concern that prospects for slower growth would damp energy demand.
