* US economy grew at slower-than-expected 2.8% in 3rd-Qtr
* Weekly US data to show rising crude, product stocks-Poll
* Oil demand growth outpacing supply in 2010-Reuters poll
(Recasts, adds details, changes dateline from LONDON)
By Joshua Schneyer
NEW YORK, Nov 24 (Reuters) - Oil fell toward $76 a barrel
on Tuesday after data showed the U.S. economy grew at a
slower-than-expected pace last quarter and investors braced for
weekly figures to show crude stocks rose in the world's top
energy consumer last week.
A sluggish recovery from the worst U.S. recession in seven
decades may hurt demand for crude. The world's largest economy
expanded at an annual rate of 2.8 percent last quarter, the
Commerce Department said Tuesday, revising down an earlier
estimate, which had pegged growth at 3.5 percent.
[]
U.S. consumer spending, which typically accounts for more
than two-thirds of economic activity, also lagged behind
estimates last month, the Commerce Department said.
"We don't like the GDP figures and we're worried about a
potential build in crude stocks," said Tim Evans, oil analyst
with Citi Futures Perspective in New York.
"Consumer spending is weaker than expected and that's where
we hoped to see a pickup in petroleum demand."
U.S. crude for January delivery <CLc1> fell $1.45 to $76.11
per barrel by 11:50 a.m. EST (1650 GMT). Oil prices had risen
slightly on Monday. London Brent crude <LCOc1> was down 86
cents to $76.60.
Prices fell as most analysts bet weekly U.S. data would
show crude and fuel stocks rose last week, as Gulf of Mexico
production rebounded after Tropical Storm Ida shut some of it
in the previous week.
Crude inventories likely rose 1.6 million barrels in the
week to Nov. 20, while stocks of gasoline and distillate fuels
also rose, according to most analysts polled by Reuters.
[]
Weekly data from the private industry American Petroleum
Institute (API) is due at 4:30 p.m. EST (2130 GMT), followed by
official data from the Department of Energy early Wednesday.
Oil prices have risen from below $33 a barrel last
December, to above $76 on Tuesday, although they are still
around 48 percent lower than a record reached last July, above
$147 a barrel.
Oil prices were bolstered in recent weeks by rallying stock
markets and a weaker U.S. dollar, which makes the commodity
cheaper for holders of foreign currency. U.S. stocks mostly
fell on Tuesday, while the dollar edged higher against a basket
of foreign currencies. [][]
Growing oil use will outpace the rate of new oil supplies
in 2010, eroding global stockpiles of crude, which have mounted
during an economic crisis, according to a Reuters survey on
Tuesday. []
The poll of 10 top oil-tracking analysts and organizations
predicted oil demand would rise by 1.3 million barrels per day
(bpd) next year.
U.S. consumer confidence edged higher in November after an
unexpected drop in October, industry group The Conference Board
said Tuesday. []
Analysts remain worried about the pace of fuel demand
recovery. On Nov. 20, top independent U.S. refiner Valero Corp
<VLO.N> said it would permanently shut its 210,000 barrel-a-day
Delaware City plant.
"The Valero closure is a big red flag that says 'We're
struggling and demand is bad,' " Evans said.
(Christopher Johnson in London and Robert Gibbons in New
York contributed reporting; Editing by Lisa Shumaker)
((Email: joshua.schneyer@thomsonreuters.com; +1
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