(Recasts lead, updates with details, background throughout)
TOKYO/SINGAPORE, Nov 11 (Reuters) - Oil prices tumbled more
than $2 to near $60 a barrel on Tuesday as a firmer dollar and
renewed gloom over the global economy wiped away the brief
euphoria that greeted Beijing's $600 billion stimulus plan.
News on Monday that Saudi Arabia had cut oil sales to major
customers in Asia and Europe also failed to turn the tide on a
market that has shed 60 percent of its value since hitting a
record high $147 a barrel in July as the dawning of a global
recession depresses demand from both consumers and investors.
U.S. light, sweet crude for December delivery <CLc1> fell
$1.91 or 3 percent to $60.50 a barrel by 0149 GMT, abruptly
ending a mild two day rally. Prices ended 2 percent higher on
Monday after touching a near 20-month low of $59.10 a barrel.
London ICE Brent crude <LCOc1> fell $1.74 to $57.34.
Doom and gloom returned to Asian markets on Tuesday after a
brief glimmer of hope appeared at the weekend in the form of
China's near $600 billion spending package, which aims to boost
demand in the world's fourth-largest economy. []
But U.S. stocks dipped on Monday as investors expressed
doubts about whether the stimulus plan would avert a global
economic slump and shares of General Motors fell to 62-year
lows on worries about its dwindling cash. []
Japan's benchmark Nikkei average <> followed suit on
Tuesday, falling 3.4 percent while the dollar rose 0.6 percent
against the euro in early trade, unravelling Monday's gains.
"The losses started after the stock market closed down, so
demand fears are certainly a factor," said Ken Hasegawa,
manager of commodity derivatives sales at broker Newedge in
Tokyo. "But there is not one decisive factor leading this."
With the focus on demand destruction rather than supply,
news that Saudi Arabia had told refiners in Asia it would cut
December supplies by 5 percent, signalling its adherence to
OPEC's deal to cut output, failed to sustain early gains.
[]
In a clear sign of how supply-side concerns have been
sidelined by investors, traders were unfazed by a threat from
Nigeria's most prominent militant group to renew attacks on the
oil sector if soldiers stormed its hideouts.
A military spokesman denied such plans. []
Data due later on Tuesday will provide the latest evidence
of oil demand in China, the world's second-largest consumer,
with import figures likely to show a near total halt to imports
of diesel and gasoline and likely tepid growth in crude
purchases.
In the United States, the latest weekly inventory data is
likely to show rising stockpiles as demand remains weak.
Crude oil stocks were expected to have risen by 800,000
million barrels last week, while distillate stocks should rise
by 500,000 million barrels and gasoline by 800,000
million-barrels, a preliminary poll of analysts showed. []
The data will be released on Thursday this week, a day
later than usual due to a national holiday.
(Reporting by James Topham and Jonathan Leff; Editing by
Clarence Fernandez)
