* U.S. existing home sales dive
* U.S. crude stocks seen up 800,000 barrels -poll
* Hurricane Danielle threat to U.S. Gulf fades
(Recasts, updates prices, market activity, new byline, changes
dateline from previous LONDON)
By Robert Gibbons
NEW YORK, Aug 24 (Reuters) - Oil fell for a fifth straight
session on Tuesday as weak U.S. economic data fueled concerns
about the economy and the oil demand outlook, with U.S. oil
inventories at record highs.
U.S. refined products futures continued to slide, with RBOB
gasoline futures prices hitting a 2010 low as the U.S. summer
driving season neared its end.
U.S. crude for October delivery <CLc1> fell $1.05, or 1.44
percent to $72.05 a barrel by 12:07 p.m. EDT (1607 GMT), having
traded from $71.45 to $73.05. That intraday low was a penny
above the $71.44 low struck on July 7.
Total U.S. crude trading volume neared 400,000 lots at
midday in New York, heavy compared to the 30-day average of
more than 590,000 lots per session.
October Brent crude <LCOc1> fell $1.02 to $72.60.
Crude oil prices and U.S. equities extended losses after an
industry group report showed sales of previously owned U.S.
homes dropped more steeply than expected in July.
[]
"Existing home data was worse than expected and is putting
pressure on everything," said Tom Bentz, broker at BNP Paribas
Commodity Futures Inc in New York.
U.S. stocks fell more than 1 percent, also pressured by the
report showing poor home sales. []
The dollar turned broadly weaker, which helped limit crude
oil's losses, industry sources said. The yen rose to a 15-year
high against the dollar and was also up against the euro as
investors sought a safe haven on fears the global economy is
slowing.
The dollar also weakened against the euro <EUR=> and saw
the dollar index <.DXY> slip after the U.S. home sales report.
[]
INVENTORIES IN FOCUS NEXT
U.S. crude oil stocks were forecast to have risen 800,000
barrels last week, according to a preliminary Reuters poll of
analysts on Monday, ahead of American Petroleum Institute data
due on Tuesday at 4:30 p.m. EDT (2030 GMT) and U.S. government
data on Wednesday at 10:30 a.m. EDT (1430 GMT). []
U.S. combined crude oil and products stocks instead rose to
a record high in the week to Aug. 13.
High inventories, tepid demand and the coming end of
driving season have helped pummel gasoline futures.
On Tuesday, U.S. September RBOB gasoline futures <RBc1>
fell 2.32 cents, or 1.23 percent, to $1.8578 a gallon, but
traded as weak as $1.8368, lowest since prices fell to $1.8263
on Dec. 17, 2009. U.S. September heating oil <HOc1> fell 1.51
cents to $1.9403 a gallon.
The September refined products contracts expire on Aug.
31.
Oil prices have fallen by around 13 percent since hitting a
three-month high of $82.97 a barrel in early August as evidence
mounted that a fuel demand recovery is likely to be protracted
even as inventories stayed well above year-ago levels.
"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.
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For a graphic on oil's correlation with equities, see:
http://link.reuters.com/ryp86n ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
NO STORM THREATS YET
Oil prices so far have had scant lift from Hurricane
Danielle, which weakened in the Atlantic Ocean and posed no
threat to Gulf of Mexico operations. []
But analysts said the market would still show caution, with
the potential for future storms 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.
(Additional reporting by Gene Ramos in New York, Emma Farge in
London and Alejandro Barbajosa in Singapore; Editing by David
Gregorio)
