UPDATE 9-Oil falls on high inventories, weak demand

* Oil prices recover from 1-mth low as U.S. dollar weakens

* Swelling U.S. oil stocks highlight demand weakness

* Total's CEO says fundamentals don't support prices (Updates with settlement prices)

By Matthew Robinson

NEW YORK, Nov 13 (Reuters) - Oil prices fell on Friday, briefly touching a one-month low as bulging fuel inventories in the United States stirred demand concerns.

U.S crude futures CLc1 settled down 59 cents at $76.35 a barrel, after earlier trading down to $75.57 a barrel, the lowest level since mid-October. In London, Brent crude futures LCOc1 fell 47 cents to settle at $75.55 a barrel.

Crude's losses extended a 3-percent drop on Thursday after the U.S. Energy Information Administration reported crude and product stocks in the world's largest energy consumer rose more than expected last week. [EIA/S]

A rise of 1.8 million barrels in U.S. crude oil stocks and an increase of 2.5 million barrels in gasoline stocks came as data showed demand still trailing year-ago levels.

Fuel consumption in the United States and other large industrial countries was battered by the economic crisis, pushing crude prices off record highs near $150 a barrel in July 2008 to below $33 a barrel in December.

Prices have recovered since then as markets look toward an economic rebound that could boost oil demand.

"Crude futures are down, still hurt by Thursday's dismal inventory report showing petroleum inventories rose, with demand down, even though refinery rates were down a lot," said Gene McGillian, analyst for Tradition Energy.

"There's a battle in the oil markets between bearish fundamentals and expectations on when the economy turnaround will come."

Oil prices found some support in early afternoon trade from the weaker U.S. dollar following U.S. data that showed a big jump in the U.S. trade deficit. [USD/]

A weaker dollar can boost demand for oil, which is priced in dollars, since it makes the commodity cheaper for holders of other currencies.

U.S. consumer sentiment fell in early November to the weakest level in three months amid grim expectations for job and income prospects, a survey showed on Friday. [ID:nN13145905]

Energy experts say current fundamentals may not support crude prices.