NEW YORK, March 20 Reuters U.S. crude oil stockpiles fell unexpectedly last week as exports rose and refiners continued to increase activity, while gasoline inventories decreased more than expected, the Energy Information Administration EIA said on Wednesday.

Crude inventories fell for the second week in a row, dropping by 2 million barrels to 445 million barrels in the week ended March 15, the EIA said, compared with analysts39; expectations in a Reuters poll for a 13,000barrel rise.

Gasoline stocks continued a seventh straight week of drawdowns, falling by 3.3 million barrels to 230.8 million barrels, the EIA said. Analysts had projected a 1.3 millionbarrel draw.

On the Gulf Coast, gasoline in storage fell by 1.82 million barrels to 76.58 million barrels, the lowest in three years, EIA data shows.

Oil futures broadly extended their losses after the report with Brent crude down 1.45, or 1.7, at 85.93 a barrel by 1119 a.m. EST 1519 GMT and U.S. crude 1.77, or 2.1, lower at 81.70 per barrel.

Despite the falling inventories, oil prices extended losses partly due to weaker gasoline demand, said Bob Yawger, director of energy futures at Mizuho.

The rally we39;ve seen in the past few weeks has been partially because of gasoline but those fundamentals aren39;t quite as strong, Yawger said.

Finished motor gasoline supplied, which represents demand, fell 235,000 barrels per day to 8.8 million bpd, which is the first time in three weeks it has dropped below 9 million bpd….