* U.S. oil inventories rose for 2nd straight week -poll
* For a short-term technical outlook, click []
* Coming Up: API inventory report; 2030 GMT
(Updates prices)
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 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, trimming
the investment appeal of commodities, as the cost of insuring
Greek debt against default rose to a record high.
[]
The greenback weakened against a basket of currencies on
Tuesday <.DXY>, giving back gains made the previous day, while
stock markets across Asia tumbled. [] []
"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 National Australia Bank. "It's a supply side
phenomenon."
U.S. crude for June delivery <CLc1> fell 58 cents to $83.62
a barrel by 0658 GMT, while ICE June Brent crude <LCOc1>, down
33 cents at $86.50, was almost $3 higher, the widest premium
since August last year.
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."
CONTANGO GROWS
Over the past month, prompt crude prices have widened their
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.
For a graphic showing the growing contango:
http://graphics.thomsonreuters.com/gfx/RSW_20102704123543.jpg
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 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.
(Additional reporting by Ryan Siew; Editing by Michael
Urquhart)
