* U.S. crude oil stocks highest since June 2009 - EIA
* Rapid rise leaves crude markets over-bought, charts show
* Coming Up: US jobless claims data at 8:30 a.m. EDT Thurs
(Recasts, updates prices, market activity; new byline, changes
dateline, previously LONDON)
By Robert Gibbons
NEW YORK, April 7 (Reuters) - Oil prices fell on Wednesday
after six straight sessions of gains, pressured by a stronger
dollar and U.S. government data showing a bigger-than-expected
increase in crude inventories.
U.S. light crude futures for May <CLc1> were 20 cents lower
at $86.64 by 1:37 p.m. EDT (1737 GMT), but up from the 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> had bounced and was up 12 cents to
$86.27.
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 0.8 percent against a basket of
currencies <.DXY> as the euro fell to a one-week low against
the dollar amid concerns about Greece's debt crisis. []
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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Technical charts also indicated that oil might be due for
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.
CRUDE STOCKS UP 10TH CONSECUTIVE WEEK
U.S. crude oil inventories rose for a 10th straight week,
lifting stocks to the highest level since mid-June 2009, the
U.S. Energy Information Administration said 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,
according to EIA data. []
The EIA's report had a bigger build than Tuesday's data
from the American Petroleum Institute trade group, which
reported crude oil stocks rose 1.1 million barrels. []
Gasoline stocks fell to 222.4 million barrels, a drop of
2.5 million barrels, the EIA said. The forecast was for a
drawdown of 800,000 barrels. []
Distillates, including heating oil and diesel, snapped a
series of declines, rising 1.1 million barrels to 145.7 million
barrels. The forecast was for a drop of 1.2 million barrels.
Jim Ritterbusch, president at 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."
Stock markets weakened, with U.S. shares down on worries
over Greece's financial woes [].
Sources also noted geopolitical developments. China hinted
it might be ready to allow the yuan to rise. [].
"The contango is almost completely out of the crude curve.
And with geopolitics kind of heating up again and the Chinese
looking to revalue the yuan somewhat higher, I think that's
what is really driving the crude complex," said Mark Kellstrom,
senior analyst at Strategic Energy and Capital in Summit, New
Jersey.
Iran has its nuclear program dispute with the West.
Industry sources said that Russian oil company LUKOIL <LKOH.MM>
will stop supplying gasoline to Iran, another company to halt
shipments ahead of possible sanctions. []
(Additional reporting by Gene Ramos in New York and
Christopher Johnson in London; Editing by David Gregorio)
