* U.S., Japan slowdown seen as negative for oil demand
* Coming Up: API U.S. petroleum inventory report; 2030 GMT
* For a technical view, click: []
(Recasts, adds dollar/yen, updates prices)
By Alejandro Barbajosa
SINGAPORE, Aug 17 (Reuters) - Crude was steady near a
one-month low on Tuesday as a falling dollar and soft equity
markets capped investor appetite ahead of U.S. petroleum
inventory and other economic data.
U.S. crude for September delivery <CLc1> added 3 cents to
$75.27 a barrel at 0653 GMT, while October ICE Brent <LCOc1>
fell 3 cents to $75.60.
The front-month U.S. contract touched an intraday one-month
low of $74.86 on Monday, when prices posted a fifth straight
drop.
U.S. economic statistics to be published on Tuesday include
industrial production, producer prices and housing starts -
with market tone already set by disappointing economic growth
in Japan and sluggish manufacturing in the United States
reported Monday. [] []
"We are worried that some people are saying there is a 25
percent chance of a double-dip recession, and some people are
talking about deflation," said Peter McGuire, managing director
at CWA Global Markets in Sydney.
"The growth from mature markets isn't there. We are very
conscious that China can't save the day. I believe it's going
to be a flat market for the next week or two unless we have a
hurricane."
In addition to the economic indicators and oil stockpile
figures from the American Petroleum Institute, traders will
also continue to eye weather conditions in the Gulf of Mexico.
Falling equities continued to exert pressure on the crude
market. Japan's Nikkei average slid 0.4 percent on Tuesday to
its lowest close in more than eight months.
But a drop of more than 0.15 percent in the dollar's value
against a basket of currencies on Tuesday prevented crude
prices from falling further, as a weaker greenback renders oil
imports cheaper for holders of other currencies.
The dollar was hovering near a 15-year low against the yen,
a haven for investors seeking to reduce risk exposure. []
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Graphic on oil's correlations with stocks and the dollar:
http://link.reuters.com/wyq35n
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LACKLUSTRE GASOLINE SEASON
The economic slowdown has raised doubts that demand growth
from China, the world's second-biggest oil user, will revive a
rangebound crude market. And forecasts ahead of weekly U.S.
petroleum inventory reports are for gasoline stockpiles to have
remained little changed last week. []
"As you approach this time in the Northern Hemisphere, the
driving season is abating, so I don't see that the demand for
gasoline will be heavy," McGuire said.
The American Petroleum Institute will publish industry
statistics late on Tuesday, followed by government data from
the Energy Information Administration on Wednesday.
Gasoline stockpiles were forecast to have declined by just
200,000 barrels last week, a Reuters survey showed, while
supplies of distillate fuel including diesel were expected to
have gained 1.3 million barrels.
Crude inventories probably fell 1.1 million barrels,
according to the poll.
U.S. demand for gasoline peaks in the so-called driving
season from late May to early September as holidaymakers take
to the roads. But stockpiles this year have increased for most
of that period, bucking a seasonal trend of drops.
The remnants of Tropical Depression 5 strengthened in the
Gulf of Mexico and had a 60 percent chance of redeveloping into
a tropical depression over the next 48 hours, the U.S. National
Hurricane Center said late on Monday. []
But producers had on Monday not cut back production ahead
of the weather event. []
Expiring September crude oil options on the New York
Mercantile Exchange may provide some volatility on Tuesday,
ahead of the crude oil contract's expiration on Friday.
(Editing by Ed Lane)
