* Oil slides 7 pct after 10 pct surge on Tuesday
* U.S. gasoline, distillate stocks rise as demand falls
* EIA expects 1.1 million barrel per day OPEC cut by Jan
(Recasts, updates prices, market activity to settlement)
By Edward McAllister
NEW YORK, Nov 5 (Reuters) - Oil dropped 7 percent to below
$66 a barrel on Wednesday after a U.S. government report showed
fuel stockpiles growing as demand in the world's top consumer
slowed further.
U.S. crude <CLc1> settled down $5.23 to $65.30 a barrel
while Brent crude <LCOc1> lost $4.57 to settle at $61.87 a
barrel.
U.S. 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.
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 as worries about the weakening global
economy returned to the fore, a day after the U.S. presidential
election. []
Democrat Barack Obama's first day 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. []
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, in compliance
with an agreement last month aiming to stem the slide in oil
prices.
The EIA said it expected OPEC production to be cut by 1.1
million barrels a day by January, representing about 70 percent
of the planned 1.5 million barrel per day cut agreed by OPEC
last month. []
In its weekly review of the oil market, the EIA said this
would be higher than the usual 50 percent compliance with
previous cuts. OPEC member Angola said on Wednesday it had
implemented its share of the supply curbs.
US DEMAND
U.S. total oil product demand in the past four weeks fell
6.7 percent from a year ago to 19.10 million barrels per day,
the EIA reported.
U.S. crude inventories were unchanged, against analysts
expectations of a 1.1-million-barrel increase.
But crude stocks rose by a hefty 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.
(Additional reporting by Alex Lawler in London and Fayen Wong
in Perth; Editing by David Gregorio)
