May 16 (Bloomberg) -- Crude oil was little changed in New York after a report yesterday showed that natural gas supplies rose and the U.S. Congress approved legislation that strengthens oversight of electronic energy trading.

Stockpiles climbed 93 billion cubic feet last week, the Energy Department said. The Senate approved the measure by an 81-15 vote, a margin large enough to override a threatened veto from President George W. Bush. Oil prices were higher before the gas report's release on signs European fuel demand will rise.

``We've been waiting for a correction to happen,'' said Daniel Flynn, a broker with Alaron Trading Corp. in Chicago. ``The bearish natural-gas inventory number appears to have started the selling. I think once it was clear that we weren't going to break through $130 anytime soon, the funds started selling.''

Crude oil for June delivery rose 23 cents to $124.35 a barrel at 8:43 a.m. Sydney time in after-hours trading on the New York Mercantile Exchange. Yesterday, futures touched $120.75 after the gas report, the lowest since May 7, and settled 10 cents down at $124.12 a barrel. The contract surged to a record $126.98 on May 13.

Analysts forecast a natural-gas inventory gain of 88 billion cubic feet, according to the median of 23 estimates in a Bloomberg News survey.

The House approved the bill governing electronic trading May 14 by a veto-proof majority. The measure is part of a farm bill. The legislation gives the Commodity Futures Trading Commission authority to regulate contract trades that either have a large volume, are used to help determine prices or are linked to a regulated contract.

Audit Trail

It also requires an audit trail and record-keeping for electronic exchanges, imposes limits on speculation, calls for market monitoring and increases penalties the commission can levy to $1 million.

Brent crude oil for June settlement fell 61 cents, or 0.5 percent, to settle at $121.25 a barrel on the ICE Futures Europe exchange yesterday. Trading resumed at 2 p.m. after a power failure shut the exchange earlier. The contract touched a record $125.90 on May 9.

Prices might not fall much further, because of growing global demand for distillate fuels, such as heating oil and diesel. The profit margin, or crack spread, for making a barrel of oil into one of heating oil surged to $29.554 a barrel on May 13, the highest since at least 1989, according to futures prices.

``The heating oil crack tells me that this rally isn't over,'' said Jim Ritterbusch, president of Galena, Illinois- based energy consulting firm Ritterbusch & Associates. ``I think prices will be higher when we come in next week.''