* U.S. crude stocks jump surprise at 5.9 million barrels -API
* Brent premium to WTI biggest in 2 months on Cushing stocks
* Coming Up: U.S. EIA weekly inventory report; 1430 GMT
* Technicals target $77.50 on bullish reversal []
(Previous SINGAPORE, update throughout)
By Ikuko Kurahone
LONDON, Aug 18 (Reuters) - Oil prices fell on Wednesday
after an industry report on Tuesday showed a sharp increase in
petroleum inventories in top consumer the United States.
If the industry data is confirmed by another set of weekly
figures from the U.S. government due out later on Wednesday, it
would send the combined crude and product inventories in the
world's top economy to a record high. []
U.S. crude oil futures <CLc1> fell 59 cents, or 0.78
percent, to $75.18 a barrel by 0849 GMT. On Tuesday, prices rose
modestly, snapping the decline for the previous five trading
days.
ICE Brent <LCOc1> fell 51 cents to $76.42, after flipping
into a premium to the U.S. benchmark on Tuesday.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on WTI's relation to Brent and Cushing stocks:
http://link.reuters.com/sap65n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
API
Late on Tuesday, industry group the American Petroleum
Institute (API) said U.S. crude inventories rose by almost 5.9
million barrels last week. []
The data also showed a 2 million barrel rise in gasoline
inventories, which marked an unseasonal seven consecutive weeks
of increases. The auto fuel stocks typically fall during the
summer holidays in the United States.
Middle distillate inventories, including diesel and heating
oil, rose for the 11the consecutive week.
"It looks like the oil product market is very comfortably
supplied and that demand conditions remain lacklustre," said
Stefan Graber, a commodities analyst with Credit Suisse in
Singapore.
New York RBOB gasoline <RBc1> was trading 1 percent lower,
after hitting about a three month low earlier this week.
At 1530 GMT, U.S. government's Energy Information
Administration (EIA) will release its own oil data for the week
to Aug. 13.
Analysts in a Reuters poll taken before the release of the
API data expect the government figures to show a 1 million
barrel drop in total crude oil inventories and a small fall in
gasoline stocks. []
JBC Energy in Vienna said the EIA data would be
"scrutinised" for inventory levels at Cushing in Oklahoma, the
delivery point of physical U.S. crude.
High inventories at Cushing typically push North Sea
benchmark Brent crude prices to a premium to U.S. crude. Many
investors put their money in the moves of the spread between
these crude oil contracts.<CL-LCO1=R>
The premium of Brent has been around a two-month high since
Tuesday. In the week to Aug. 6, Crude supplies at Cushing stood
at 37.7 million barrels in the week to Aug. 6, just shy of a
record 37.9 million barrels in mid-May.
Oil Prices are now centred near the mid-point of the
$64.24-$87.15 trading range so far this year as increases in
energy demand in emerging markets has been insufficient to drain
ample supplies in other areas in the world.
The price level is also around the sweet spot of the $70-$80
range for the Organization of the Petroleum Exporting Countries
(OPEC).
(Reporting by Alejandro Barbajosa in Singapore and Ikuko
Kurahone in London; editing by Sue Thomas)
