* Oil drops by more than $1 a barrel on bearish U.S. oil
data
* U.S. economic indicators add to the gloom
* OPEC's compliance seen high but not enough to support
By Maryelle Demongeot
SINGAPORE, Jan 23 (Reuters) - Oil fell by more than $1 a
barrel to below $43 on Friday, as larger-than-expected U.S. oil
stocks builds and bearish economic data offset hopes for a
quick U.S. economic stimulus package.
Asian stocks markets followed the Dow Jones index lower,
with Japan's Nikkei benchmark <> sliding by nearly 3
percent on concerns about corporate earnings in Japan after a
massive loss from Sony Corp.
U.S. light crude for March delivery <CLc1> was down 70
cents at $42.97 a barrel by 0210 GMT, having slid by a much as
$1.08 earlier.
London Brent crude <LCOc1> lost 55 cents to $44.84.
"The oil inventory numbers caused some surprise.
Wednesday's rally has been put on hold as traders see the
excess supply problem not going away until at least the second
half of 2009," said Jonathan Kornafel, Asia Director of Hudson
Capital Energy, a U.S.-based options house.
U.S. weekly data, released on Thursday, showed crude
inventories up 6.1 million barrels, well above forecasts for a
1.4 million barrel rise, and leaving them more than 40 million
barrels above year-ago levels. []
Distillates stocks also increased by a counter-seasonal
800,000 barrels, while gasoline inventories climbed 6.5 million
barrels.
Oil prices have lost more than $100 a barrel over the past
six months as a financial crisis has turned into a global
economic crisis, sending major economies towards recession and
cutting oil demand in the process.
The latest U.S. economic data, also released on Thursday,
showed new claims or U.S. jobless benefits exceeded analyst
expectations while home-building slid to a record low in
December. []
Prices had gained 12 cents on Thursday as hopes that the
White House would move quickly on an economic stimulus package
outweighed flagging demand and rising inventories in the
world's top consumers.
But the rally did not last.
"The Obama announcement rally yesterday merely reflects the
hopes of a possible end to the economic turmoil. But this end
will not come about for some time," Kornafel added.
While demand remains weak, eyes have been on OPEC, which
has started turning the taps off after agreeing to curb
supplies by 4.2 million barrels per day from September levels
in the hope of stopping the slide in prices.
OPEC seaborne oil exports, excluding Angola and Ecuador,
will drop 250,000 barrels per day (bpd) into early February to
a five year low, U.K. consultancy Oil Movements, which tracks
future shipments, said on Thursday. []
But more is needed to stop the falls.
"Signs of improved OPEC compliance help crude bounce from
lows, despite the deepening recession. The recent rally could
continue, but is likely unsustainable," said JP Morgan in its
monthly energy report.
(Editing by Michael Urquhart)
