* Threat of storm in U.S. Gulf of Mexico eases
* Higher U.S. crude oil stocks seen
* Global energy demand up 1.5 pct annually through 2030 -IEA
(Updates prices, adds comment)
By Chris Baldwin
LONDON, Nov 10 (Reuters) - Oil prices fell on Tuesday to
around $79 a barrel as a late-season hurricane subsided in the
Gulf of Mexico and traders awaited key U.S. inventory data.
U.S crude for December delivery <CLc1> fell 27 cents to
$79.16 a barrel by 1032 GMT, after settling up $2 on Monday.
London Brent crude <LCOc1> was down 23 cents to $77.54.
The International Energy Agency published its annual World
Energy Outlook on Tuesday, forecasting a rise in primary energy
demand globally by 1.5 percent every year until 2030, and
calling for $26 trillion in investment to meet the expected
demand. []
Market reaction to the report was negligible because the
annual report is "a projection on the basis of a scenario,
trying to look 20 years out," Harry Tchilinguirian, senior oil
analyst at BNP Paribas, said.
"Long term it's an important guideline, but any reactions in
oil short-term will be on dollar moves, equity markets and
central bank decisions," he said.
"Market-wise, the big issue is how commodities are being
targeted by investors looking for yield as a result of
accommodative monetary policy," Tchilinguirian said.
HURRICANE DOWNGRADED
Hurricane Ida, the first real weather threat to oil
production of the 2009 season, was downgraded to a tropical
storm on Monday, but output remained curtailed as producers
awaited its passage out of the Gulf.
Ida shut in 29.6 percent of oil production and 27.5 percent
of gas output from the Gulf of Mexico, the U.S. Minerals
Management Service said Monday. []
U.S. crude oil inventories last week look to have risen
slightly due to higher imports, according to analysts polled by
Reuters late on Monday. []
Industry group the American Petroleum Institute (API) will
release weekly inventory data later on Tuesday, while a report
from the U.S. Energy Information Administration (EIA) will be
delayed from Wednesday to Thursday due to a federal holiday.
Oil prices have rallied 77 percent so far this year, from a
low of below $33 in December, though they are still nearly 47
percent below their high of more than $147 a barrel touched in
July last year.
"The catalyst for this rally has been, in our view,
long-anticipated signs of improvement in oil fundamentals in the
context of generally constructive economic data," analysts at
Goldman Sachs wrote in their Commodity Watch note to investors.
"Strong emerging market demand has pulled supply elsewhere,
reducing U.S. petroleum imports. Specifically, Chinese oil
demand continues to surge, driven by strong economic activity."
FEEBLE DOLLAR
Further support for oil prices has come as the U.S. dollar
fell to a 15-month low against a basket of major currencies,
lifting gold prices to a new record and the euro above $1.50.
Dollar weakness was due to expectations for U.S. interest
rates to stay near zero. [] The dollar edged up
slightly off its lows on Tuesday, however. []
Larger-than-expected increases at the pump in China on
Monday suggested Beijing saw little danger from the inflationary
worries that beset price rise decisions just a year ago.
The 7-percent rise in China's retail gasoline and diesel
prices, or 480 yuan ($70.32) per tonne, is not seen curbing
Chinese oil demand, which is instead expected to grow and
support global oil markets. []
(Additional Reporting by Felicia Loo in Singapore; editing by
Anthony Barker)
