* Crude stocks up 4.7 mln barrels, dwarf forecast -API
* U.S. housing market shows signs of recovery
* Eyes on U.S. EIA inventory data (Updates prices, adds
analyst's comments)
By Fayen Wong
PERTH, March 18 (Reuters) - Oil fell from a 2-1/2-month
high to below $49 a barrel on Wednesday, after bearish industry
data showing large builds in U.S. crude stocks eroded investor
sentiment from better-than-expected U.S. housing data.
Analysts said data from the American Petroleum Institute,
which showed crude stocks rose much more than expected last
week, reflected poor demand at refineries and could foreshadow
an equally poor set of numbers from the U.S. Energy Information
Administration due later.
U.S. light crude for April delivery <CLc1> fell 50 cents to
$48.66 a barrel by 0621 GMT, erasing some of Tuesday's gains of
$1.81 that took the contract to settle at $49.16 -- the highest
settlement since Dec. 1, 2008.
London Brent crude <LCOc1> fell 62 cents to $47.62.
"The market is taking profit on expectations that the EIA
report is also going to show a large build in crude stocks,"
said Greg Smith, a fund manager at Global Commodities in
Australia.
"But the sentiments are still quite positive and the market
seems to looking for any sort of bullish news to justify buying
at these levels, so that may herald an uptrend in oil prices."
The American Petroleum Institute (API) said in its
inventory report late on Tuesday that domestic crude stocks
rose 4.7 million barrels last week to 349.9 million, dwarfing
forecasts for an increase of just 1 million barrels.
[]
The U.S. Energy Information Administration (EIA) will issue
its own stock data later on Wednesday, with crude oil
inventories seen up last week as refinery demand remained tepid
and imports increased a little, an expanded Reuters poll
showed. []
Oil has tumbled $100 from a record high above $147 last
July as the global economic meltdown slashed demand for the
fuel worldwide.
But prices, which sank to levels below $35 a month ago,
have since stabilised in the $40-$50 range, as producer group
OPEC cut output by 4.2 million barrels per day (bpd) and vowed
at its Sunday meeting to achieve higher compliance from members
to reduce production.
"Overall, I think we're seeing more funds flowing back into
commodities markets and there are now more efforts in trying to
push oil prices through $50 levels," said Gerard Rigby, an
analyst at Fuel First Consulting.
HOUSING DATA
Oil's gains on Tuesday were boosted by better-than-expected
U.S. housing data and inflation, which drove U.S. stocks higher
and lifted investors' risk appetite.
Government data showed U.S. housing starts and permits
rebounded in February from record lows, rising for the first
time in 10 months and offering a glimmer of hope for the
recession-hit economy. []
Still, analysts are cautious about whether the housing data
marks a definite turnaround for the world economy and said the
market would keep a close eye on further data to gauge how the
U.S. economy was faring.
Data due to released later in the day include U.S. core
consumer price index for February as well as results of an
interest rate meeting held by the U.S. Federal Open Market
Committee.
(Reporting by Fayen Wong; Editing by Valerie Lee)
