* U.S. crude, product inventories highest since 1990
* Technicals show price headed to $76.63 []
* Coming Up: U.S. weekly jobless claims; 1230 GMT
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, Aug 19 (Reuters) - Oil was under pressure on
Thursday from a stronger dollar and brimming U.S. petroleum
inventories, while modest gains in Asian equities provided
support to a market focused on the prospects for economic
growth.
U.S. September crude <CLc1> fell 11 cents to $75.31 a
barrel at 0444 GMT, while ICE Brent <LCOc1> fell 18 cents to
$76.29.
Prices have this week shown signs of stabilising above $75,
a level that most traders and analysts say is representative of
the current fundamental balance. That is also close to the
mid-point of this year's $64.24-$87.15 trading range, as demand
growth has been insufficient to drain ample supplies.
The U.S. benchmark touched a six-week low at $73.83 on
Wednesday, after the Department of Energy said total U.S.
petroleum stockpiles last week soared to a 20-year high on a
weekly basis. Prices then tracked Wall Street higher on an
upbeat forecast from U.S. retailer Target.
A steady market is discouraging investors who thrive on
volatility from actively trading oil, leaving prices under the
influence of currency and stock market moves, said Keichi Sano,
general manager of research at SCM Securities in Tokyo.
"This lacklustre market has no momentum, incentive, power
or direction," Sano said. "The DOE numbers don't change the
mood."
"If they had a good interest in participating in the
market, or if they had enough long or short positions, the
numbers should move the market, but not many people are holding
exciting positions."
Money managers cut net long crude oil positions on the New
York Mercantile Exchange in the week through Aug. 10, according
to the Commodity Futures Trading Commission. []
The dollar strengthened by 0.4 percent against a basket of
currencies on Thursday, while the Nikkei gained 1 percent.
[] []
Prices might take their next cue from Thursday's weekly
U.S. jobless claims report, seeking evidence that the economic
recovery is continuing apace.
For most of this year, oil prices have hovered around the
sweet spot for the Organization of the Petroleum Exporting
Countries (OPEC) in the $70-$80 range, after the group relaxed
compliance with 2008 production cuts as demand rebounded.
CRUDE STOCKS
U.S. commercial crude and product inventories rose last
week to the highest level since the U.S. government began
tracking weekly data in 1990, statistics published on Wednesday
showed, a sign fuel supply is outpacing demand amid a slow U.S.
economic recovery.
In aggregate, total commercial crude and product stocks
rose to 1.130 billion barrels in the week to Aug. 13, according
to a weekly report from the Energy Information Administration,
above the previous weekly record high of 1.127 billion barrels
set in September 1990. []
Before EIA began breaking out weekly stocks data, it
measured monthly inventory levels, which once totaled as high
as 1.36 billion barrels in August 1980.
The rise in total commercial stocks came even as domestic
crude stocks fell 818,000 barrels and gasoline by 39,000
barrels. Distillate stocks rose 1.1 million barrels, their 12th
consecutive weekly increase.
Inventories at the key Cushing, Oklahoma hub fell by
687,000 barrels to 37 million. Cushing is the delivery point
for the New York Mercantile Exchange's benchmark West Texas
Intermediate crude futures contract.
The U.S. National Hurricane Center said late on Wednesday a
tropical wave over the west central Caribbean Sea south of
eastern Cuba still had a low 20 percent chance of developing
over the next 48 hours as it moves west.
(Editing by Michael Urquhart)
