Crude prices gained Thursday moving away from near seven-week lows achieved after the reported increase in US stockpiles.

May crude oil futures rose $0.13 to $50.35 a barrel.

The U.S. Department of Energy reported on Wednesday an addition of 3.6 million barrels to the nation’s crude supply that ended at 320.7 million barrels, which is a 8.7% increase over last year’s levels. Crude stockpiles have been rising for nine weeks in a row.

Gas supplies have also added 800,000 barrels to end at 213.1 million barrels, representing a 5.8 percent increase above year-ago levels. Inventories of distillate fuel, including heating oil and diesel, lost100,000 barrels and ended at 104.0 million barrels, less than 1 percent in excess of year ago numbers.

The fall was precipitated by the forecast from the International Energy Agency this week that predicted a slowdown in demand growth in 2005.

"The facts are right now we haven’t seen any signs that demand is slowing. Nonetheless the rumor of slowing demand is now being sold," said Phil Flynn, an analyst with Chicago-based Alaron Trading Corp. on its Web site.

In the meantime, Indonesia will soon probably turn into an oil importer from an oil exporter. The nation that is the only OPEC member in Southeastern Asia is projected by the Energy and Mineral Resources Ministry to start importing a net 61,000 barrels a day in 2005 from net exports of 27,000 barrels a day in 2004, after it became obvious that ventures by ConocoPhillips, Unocal Corp. and PetroChina Co. will fail to boost output.