* U.S. crude stocks probably rose 800,000 barrels - poll
* Hurricane Danielle threat to U.S. Gulf fades
* Coming up: weekly U.S. API crude stocks; 2030 GMT
(Updates prices)
By Emma Farge
LONDON, Aug 24 (Reuters) - Oil prices fell below $72 a
barrel on Tuesday, down for a fifth day as gloom about the
ability of top consumer the United States to work through record
stocks weighed on sentiment.
U.S. crude prices <CLc1> fell $1.12 to $71.98 a barrel by
1249 GMT, leaving prices at the lowest level since early July.
ICE Brent crude futures <LCOc1> shed 96 cents by the same
time to $72.66 a barrel, maintaining its premium to the rival
benchmark established last week.
"The bearish trend since Aug. 17 is intact. Economic
momentum is slowing, and everyone is worried about it. Both
supply and demand fundamentals are weak," said VTB Capital
analyst Andrey Kryuchenkov.
U.S. crude oil inventories are forecast to have risen by
800,000 barrels last week, according to a preliminary Reuters
poll of eight analysts ahead of American Petroleum Institute
data at 2030 GMT and more authoritative U.S. government data on
Wednesday. []
Typically stocks fall through the summer driving season, but
they instead rose to a record high in the United States in the
week to Aug. 13.
European equities fell in early trade to the lowest level in
a month, adding to the downwards momentum and reinforcing the
strong correlation between the two asset classes. []
Hurricane Danielle strengthened over the Atlantic Ocean to a
category two storm on Tuesday but posed no threat to land or
energy interests, the U.S. National Hurricane Center said.
[]
This Atlantic hurricane season was forecast to be the most
active in five years, inflating oil prices with a storm-related
premium, but few have emerged.
For now, analysts said that the potential for future storms
is likely to support oil at around $70 a barrel.
"The fact that we have yet to enter the most critical part
of the hurricane season (September) should prevent complacency
and likely force the market to hold $70 support," said Edward
Meir, senior commodity analyst at MF Global.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on the correlation with equities, see:
http://graphics.thomsonreuters.com/gfx1/DTR_20102408091440.jpg
Link to National Hurricane Center: http://www.nhc.noaa.gov/
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Oil prices have fallen by around 13 percent since hitting a
three-month high of $82.97 a barrel in early August as evidence
has mounted that the fuel demand recovery is likely to be
protracted while stocks have swelled.
Traders will look to a raft of economic data including
existing home sales later on Tuesday for signs that either
confirm or contradict this view.
Last week's economic reports included data showing that U.S.
jobless claims hit a nine-month high and U.S regional
manufacturing contracted for the first time in a year.
Investors' interest in oil diminished last week. Money
managers cut net long crude oil positions on the New York
Mercantile Exchange, the Commodity Futures Trading Commission
said on Friday. []
(Additional reporting by Alejandro Barbajosa in Singapore,
editing by Jane Baird)
