* API data shows surprise crude stock build; eyes on EIA
* Russian oil output hits post-Soviet record high in Nov
* Gold hits record high, copper climbs but fails to lift oil
(Recasts, updates prices)
By Joe Brock
LONDON, Dec 2 (Reuters) - U.S. crude futures fell below $78
a barrel on Wednesday as investors waited to see if U.S.
government oil inventory data would confirm Tuesday's industry
numbers, which showed a surprise build in crude stocks.
Data from the American Petroleum Institute, released after
Tuesday's settlement, showed U.S. crude inventories rose 2.9
million barrels last week, dwarfing the forecast in a Reuters
poll for a 400,000 barrel increase and raising doubts over
demand recovery in the world's largest energy user.. []
The more closely watched U.S. Energy Information
Administration petroleum report is due for release at 1530 GMT.
"I think considering how bearish the report was it is not
surprising oil is down," said Carsten Fritsch, oil analyst at
Commerzbank in Frankfurt
"There was nothing bullish in this report."
NYMEX crude for January delivery <CLc1> fell 52 cents to
$77.85 a barrel by 1408 GMT, after settling up $1.09, or 1.4
percent, on Tuesday.
Brent crude <LCOc1> fell 41 cents to $78.94.
Further doubts over potential oil gains were heightened on
Wednesday as prices failed to be spurred on by rallies in other
commodities.
Gold <XAU=> hit a record high as the euro rose against the
U.S. dollar, fuelling investment interest in the precious metal
as an alternative investment. Copper <MCU3> rose to its
strongest level in 14 months.
"It makes plain the underperformance of oil compared to
other commodities like copper and gold," Fritsch said.
Oil has rallied from below $33 last December but has held in
a narrow band of $70 to $82 over the past two months. Some
analysts see little chance prices will push above the range,
given ample supplies and little sign of strengthening demand.
"The rub however, is that more good news is being priced in
than bad news, suggesting prices could disappoint if the focus
swings," ANZ's senior commodities analyst, Mark Pervan said.
The API data also showed distillate stocks rose 1.1 million
barrels, defying the forecast that supplies fell 300,000
barrels, while gasoline stocks jumped 3.4 million barrels
against the forecast of just a 1.0 million barrel increase.
There were further signs of rising global oil supplies on
Wednesday as Russia's Energy Ministry data showed output hit a
post-Soviet record for the fourth straight month, retaining its
position as the world's top producer ahead of Saudi Arabia.
[]
(Editing by William Hardy)
((joe.brock@thomsonreuters.com; +44207 542 9162; Reuters
Messaging: joe.brock.thomsonreuters.com@reuters.net))
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