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* Oil slides after 10 pct surge on Tuesday
* U.S. gasoline, distillate stocks rise
* U.S. demand tumbles
(Updates prices, market data)
NEW YORK, Nov 5 (Reuters) - Oil dropped nearly 7 percent to
below $66 a barrel on Wednesday after a U.S. government report
showed rising fuel stockpiles and slowing demand in the world's
top energy consumer.
Gasoline stocks rose by 1.1 million barrels last week,
against analyst forecasts of a draw, as demand for the fuel
fell 2.3 percent over four-week period to Oct. 31, the Energy
Information Administration said. []
"The data looks bearish on most fronts with product
supplies building more than expected as refinery activity held
firm at the prior week's level," said energy analyst Jim
Ritterbusch.
U.S. crude <CLc1> fell $4.78 to $65.75 a barrel by 12:52
a.m. EST (1752 GMT), while Brent crude <LCOc1> lost $4.12 to
$62.32 a barrel.
Crude prices have tumbled by about half from a record high
of $147.27 a barrel in July as the global credit crisis hit the
wider economy, damping fuel demand in major consumer nations.
U.S. stocks fell on Wednesday and earlier pared losses
after data showed that the vast services sector shrank sharply,
on the day after the U.S. presidential election.
Barack Obama's first morning as president-elect was marked
by reports of deep cuts in employment by private employers,
possibly foreshadowing weakness in the government's employment
report on Friday. []
US DEMAND
U.S. total oil product demand in the past four weeks fell
to 19.10 million barrels per day, down 6.7 percent from a year
ago, the EIA reported.
U.S. crude inventories were unchanged, against analysts
expectations of a 1.1-million-barrel increase.
Crude stocks rose by 1.8 million barrels at Cushing,
Oklahoma, the delivery point for U.S. crude futures, while
distillate inventories rose by 1.2 million barrels.
Early pressure on crude came after Obama's victory in the
U.S. presidential election boosted the U.S. dollar. The dollar
later fell against the yen but retained gains against the euro.
[]
A firmer dollar makes oil more expensive for holders of
other currencies and tends to pressure the crude price lower.
Oil had surged $6.62, or 10.36 percent, on Tuesday, the
largest one-day gain since Sept. 22, on signs Saudi Arabia and
other OPEC members had made cuts in oil exports.
The cartel agreed last month to reduce supplies to help
stem the slide in oil prices, and sources say top exporter
Saudi Arabia has reduced exports.
Fellow OPEC member Angola said on Wednesday it had
implemented its share of the supply curbs.
(Additional reporting by Alex Lawler in London and Fayen Wong
in Perth; Editing by Christian Wiessner)
