(Corrects weekly EIA data to 356.2 million barrels, instead of
354.2 million)
* Crude prices top $87, near highest since October 2008
* Rapid rise leaves crude markets over-bought, charts show
* U.S. crude oil stocks highest since June 2009 - EIA
* Coming Up: U.S. jobless claims data at 1230 GMT Thursday
(Updates prices, detail)
By Christopher Johnson
LONDON, April 7 (Reuters) - Oil slipped from 18-month highs
around $87 on Wednesday, falling after six consecutive daily
rises, as the dollar strengthened and U.S. government data
showed a bigger-than-expected increase in crude inventories.
Technical charts also indicated that oil might be due for a
period of consolidation after a rise of around 9 percent in
seven trading days leaving the 14-day relative-strength indexes
(RSIs) close to 70, suggesting markets were modestly
overbought.
U.S. light crude futures for May <CLc1> were 80 cents lower
at $86.04 by 1455 GMT, after hitting an intraday low of $85.75.
On Tuesday, U.S. crude reached an intraday peak of $87.09, its
highest since October 2008.
London ICE Brent <LCOc1> fell 54 cents to $85.61.
"We think the current rally in crude, although still
looking formidable on the charts, is getting long in the tooth,
and due for a modest pullback, especially if the dollar regains
its strength in the wake of continued eurozone jitters," said
Edward Meir, senior commodities analysts at brokers MF Global.
Daniel Briesemann, analyst at Commerzbank, said commodities
were retreating in the face of the strengthening dollar: "The
dollar rise is capping gains across the board," he said.
The dollar was up around 0.3 percent against a basket of
currencies on Wednesday as the euro eased. []
Oil and commodities often move inversely to the dollar as
they are priced in the U.S. currency on international markets.
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10TH CONSECUTIVE RISE
U.S. crude oil inventories rose for the 10th time in a row
last week, pushing up supply to its highest level since
mid-June 2009, government data showed on Wednesday.
Crude inventories rose by 2 million barrels to 356.2
million barrels in the week to April 2, the highest since
supply hit 357.7 million barrels in the week to June 12, 2009,
data from the U.S. Energy Information Administration showed.
[]
The latest reading from EIA is a bigger build than
Tuesday's data from the American Petroleum Institute (API)
trade group which said the world's largest energy consumer's
crude oil stocks rose 1.1 million barrels last week. []
Gasoline stocks fell to 222.4 million barrels, a weekly
drop of 2.5 million barrels, EIA added, while analysts polled
by Reuters had forecast a drawdown of 800,000 barrels.
[]
Distillates, including heating oil and diesel, snapped a
series of weekly declines, logging a gain of 1.1 million
barrels to 145.7 million barrels, EIA added. This compared with
a forecast decline of 1.2 million barrels.
Jim Ritterbusch, president of Ritterbusch & Associates said
the EIA data looked "bearish on most counts with crude stocks
building more than expected, distillate stocks posting a
counter-seasonal build and gasoline draw falling short of our 3
million barrel expectations."
"More importantly, runs are surging, especially in Gulf
Coast region, a development that should easily outweigh the
gasoline stock decline in keeping pressure on gas cracks.
"As a general matter, the ability of crude stocks to keep
building even in face of big jump in runs is quite bearish."
Stock markets did little to temper the negative outlook
with U.S. shares down on worries over Greece's financial woes.
[]
European stocks <> also slipped as investors
questioned the credibility of Greece's aid package after the
Greek finance minister said local banks, hit by a series of
credit rating downgrades, asked for more financial support.
(Editing by Amanda Cooper)
