* U.S. oil inventories rose for 2nd straight week -poll
* For a short-term technical outlook: []
* Coming Up: API inventory report; 2030 GMT
By Alejandro Barbajosa
SINGAPORE, April 27 (Reuters) - Oil fell for a second day
on Tuesday to trade below $84 as forecasts for repeated
increases in U.S. inventories rekindled concerns of oversupply,
while Greek debt woes and the dollar's safe haven appeal also
weighed.
U.S. crude, gasoline and distillate stockpiles probably
rose for a second straight week last week, a Reuters survey
showed on Monday. []
Investors sought refuge in the dollar on Monday as risk
aversion tied to Greece's debt crisis and bailout reduced the
appeal of commodities as an investment. But the greenback was
slightly weaker against a basket of currencies on Tuesday.
[]
"A lot of the weakness has to do with Greece and the
strengthening dollar, but the more concerning thing is the
supply situation in the U.S.," said Ben Westmore, a commodities
analyst at the National Australia Bank. "It's a supply side
phenomenon."
U.S. crude for June delivery <CLc1> declined 53 cents to
$83.67 a barrel by 0321 GMT, while ICE June Brent crude <LCOc1>
was trading almost $3 higher, down 20 cents at $86.63.
Crude stockpiles at the Cushing, Oklahoma delivery point
were above 34 million barrels in the week ended April 16, close
to the level where they depress the value of West Texas
Intermediate (WTI), the U.S. benchmark, relative to Brent.
"The big thing that is weighing in the market is the stocks
in Cushing," Westmore said. "There have been pretty big
increases over the past few weeks."
Prompt crude prices are trading at growing discounts to
contracts for later delivery, steepening a market structure
known as contango. The June WTI contract was trading about
$2.50 below the July contract, bolstering the incentives to
store crude.
U.S. crude stockpiles increased by 400,000 barrels in the
week to April 23, the Reuters poll showed, while distillates
including heating oil and diesel were expected to have risen by
1.3 million barrels and gasoline by 500,000 barrels.
The industry-funded American Petroleum Institute will
release its inventory report on Tuesday at 2030 GMT, while
government statistics from the U.S. Energy Information
Administration's will follow on Wednesday at 1430 GMT.
Traders will look for further clues to economic recovery
from the U.S. April consumer confidence data on Tuesday, as
well as the outcome of the Federal Reserve's two-day,
policy-setting meeting starting the same day.
Uncertainty over plans to curb speculation in energy
markets could fuel oil price volatility this week, after the
Commodity Futures Trading Commission's public comment period
ended on Monday.
Some of the biggest players in U.S. energy markets have
told the CFTC its plans to reduce speculation are misguided and
will drive investors to overseas and unregulated markets.
[]
The position limit proposal stems from a spike in oil
futures prices to a record of more than $147 a barrel in 2008.
Prices reached an 18-month high above $87 a barrel on April 6.
A Reuters poll on Monday showed analysts expect U.S crude
oil to average $81.06 a barrel in 2010. They cited growing
demand in emerging economies, especially China. []
"Although a lot of economies have fiscal challenges ahead,
in themselves the events in Greece won't have a big impact on
global demand," Westmore said.
(Editing by Clarence Fernandez)
