* EIA data show surprise rise in crude oil inventories
* Stock markets rise on upbeat U.S. earnings
* Strong likelihood of tropical storm off U.S. Gulf
* Coming Up: U.S. home loans data on Thursday at 1400 GMT
(Recasts with detail throughout)
By David Turner and Joe Brock
LONDON, July 21 (Reuters) - Oil slipped to around $77 per
barrel on Wednesday after weekly government data showed a
surprise increase in U.S. crude oil stocks after widespread
predictions of a drawdown.
The U.S. Energy Information Administration (EIA) said
commercial crude inventories rose 360,000 barrels in the week to
July 16 to 353.46 million barrels, confounding an average
forecast of a fall of 1.4 million barrels. []
Domestic gasoline inventories were up 1.12 million barrels
at 222.15 million barrels, while analysts polled by Reuters had
forecast a build of 900,000 barrels. Distillate stocks rose by a
sharper 3.94 million barrels to 166.58 million barrels, compared
with forecasts of a 1.7 million-barrel gain. []
The figures knocked more than $1 per barrel off U.S. crude
oil futures <CLc1> at one point, pushing the September contract
down to an intra-day low of $76.81. By 1454 GMT, the September
crude contract stood at $77.18, down 40 cents.
London ICE Brent futures <LCOc1> fell 30 cents to $75.92.
"This report was negative across the board, with the
unexpected build in crude stocks and the build in products too
as refineries ramped up production," said Mike Zarembski, senior
commodities analyst at Optionsxpress in Chicago.
Before the EIA data, buoyant corporate earnings had raised
raised optimism over the strength of U.S. economic recovery and
pushed oil up to a high of $78.57.
Results from U.S. investment bank Morgan Stanley <MS.N> and
diversified U.S. manufacturer United Technologies Corp. <UTX.N>
both helped support sentiment, traders said.
Shares rose on Wednesday in Europe <> and Asia <>
<> but were little changed in early Wall Street trading.
<.SPX>, with traders waiting for Federal Reserve Chairman Ben
Bernanke's testimony to U.S. lawmakers at 1600 GMT. Some in the
markets anticipate Bernanke may suggest steps to spur lending.
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For a graphic on commodity performance, click:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
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On Tuesday, the U.S. National Hurricane Center estimated a
60 per cent likelihood that a tropical depression would form
near Hispaniola. The storm could eventually reach the oil-rich
Gulf of Mexico. If this were to hit production, it would likely
support an oil price rally.
The Center has forecast this year's Atlantic storm season
may be the most intense since 2005, when hurricanes Katrina and
Rita nearly paralysed U.S. oil output and refining along the
Gulf coast.
China's oil demand growth accelerated to double digits in
June, Reuters calculations of official data showed on Wednesday.
[] The International Energy Agency this week
described China as the world's biggest energy consumer, but
China disputed this assessment.
BP <BP.L> Plc rejected a Times of London report on Wednesday
that Chief Executive Tony Hayward was to step down within the
next 10 weeks.[]
(Additional reporting by Alejandro Barbajosa in Singapore and
Christopher Johnson in London; editing by Jane Baird
