* API data showing large crude stockbuild hits sentiment
* EIA data delayed to Friday due to snowstorm
* U.S. blizzard, weak dlr, Greece rescue plan to boost
prices
(Updates with prices, China data, Asian stocks)
By Jennifer Tan
SINGAPORE, Feb 10 (Reuters) - Oil hovered above $73 a
barrel on Wednesday, giving up some of the previous day's gains
after data showed a large build in U.S. crude stocks,
signalling persistently weak demand in the world's top energy
consumer.
Oil had settled more than 2 percent higher on Tuesday,
buoyed by a weaker dollar, gains on Wall Street, and a huge
snowstorm looming over the U.S. Northeast, the world's largest
consumer of heating oil.
The optimism was dashed by data from the American Petroleum
Institute (API) showing a surprisingly large rise in U.S. crude
and gasoline inventories last week, though developments in the
financial markets will also affect prices, one analyst said.
"The market should not get too bearish despite the rise in
weekly inventories, because of the snowstorms sweeping across
the Northern Hemisphere," said Keiichi Sano, general manager of
research at Tokyo-based SCM Securities.
"Oil should not fall below $70. It will remain driven by
the dollar's movements and the mood in the financial markets."
U.S. crude for March delivery <CLc1> fell 22 cents to
$73.53 a barrel by 0715 GMT, off a morning low of $73.18.
London Brent crude <LCOc1> was down 35 cents at $71.78.
Crude prices are down nearly 8 percent this year to stand
at about half their July 2008 high of more than $147 a barrel.
Prices have been hammered by data showing bulging fuel
stockpiles in the U.S. despite cold weather, worries about
slower Asian demand if China further tightens its monetary
policy, and more recently, jitters over Europe's financial
stability.
Last week, U.S. crude inventories jumped by 7.2 million
barrels to 337.6 million barrels, against expectations of a
rise of 1.5 million barrels, and despite a drop in crude
imports and weekly crude runs.
Gasoline inventories also rose more than expected, climbing
1.6 million barrels to 228.8 million barrels, exceeding analyst
estimates of a 500,000 barrel build. []
Traders will await a report from the Energy Information
Administration (EIA) due on Friday for further clues on the
rate of demand recovery in the world's largest oil user.
The EIA said Tuesday its weekly data, normally released on
Wednesdays at 10:30 a.m. EST, will be delayed until Friday due
to the snowstorm blanketing the U.S. capital.
U.S. heating demand this week is seen 11.5 percent above
normal, due to the storm sweeping across the U.S. mid-Atlantic,
weather services said. []
China's crude imports slid in January, down to 4.03 million
barrels per day from their December peak of 5 million bpd,
although they were still up 33 percent on the year.
[]
Asian stocks rose on Wednesday on signs that the European
Union may rescue debt-strapped Greece, coaxing nervous
investors back to riskier assets, but uncertainty over the plan
weighed on the euro. [] []
European governments have agreed in principle to help
Greece, German coalition sources told Reuters on Tuesday.
However, a German government spokesman dampened hopes by saying
a decision had not yet been reached. European Union leaders
will hold a special summit on the economy on Thursday.
[]
(Editing by Michael Urquhart)
