UPDATE 1-Oil steady below $69 on strong equities, weak dollar

                                
 * Oil flat, gives up early gains on supply build up
 * Markets cautious on U.S. position limits debate
 * Limited impact seen from possible U.S.-China trade war
 (Updates prices)
                                
 By Sambit Mohanty
                                
 SINGAPORE, Sept 15 (Reuters) - Oil traded unchanged,
slightly below $69 on Tuesday, capping losses as buoyant
equities and the dollar's fall against the euro helped to
offset concerns about an inventory build ahead of the U.S.
autumn season.
                                
 While analysts expect the market to be cautious until
details emerge of how regulations on position limits would be
imposed, they expect only indirect impact from fears about any
U.S-China trade dispute, with a bigger role for equities and
the dollar.
                                
 "Equities are doing somewhat better in Asia today,
continuing the trend from the United States," said Victor Shum,
a Singapore-based analyst at Purvin and Gertz. "The primary
factors for the market are strong equities and a weaker dollar
against the euro."
                                
 NYMEX crude for October delivery <CLc1> fell 6 cents to
$68.80 a barrel by 0608 GMT, after settling down 43 cents on
Monday, while ICE Brent <LCOc1> lost 29 cents to $67.15.
                                
 Oil has more than doubled from this year's low of $32.70
struck on January 20, but is still 53 percent below its record
high of more than $147 hit in July 2008. The market this year
has failed to move above the $75-level struck on August 25.
                                
 The CME Group Inc <CME.O>, which runs NYMEX, sent an
advisory on Friday to traders and brokers warning of tighter
enforcement of existing position limits on NYMEX, CME, and
other exchanges from Sept. 14. [ID:nN11461892]
                                
 "The devil is in the details of the regulations," Shum
added. "And until we know the details, the market will be a bit
cautious but not unduly worried."
                                
 While the euro climbed to stay in sight of its 2009 highs,
supported by growing talk that Asian central banks were bidding
the single currency and moving away from the U.S. dollar,
Japan's Nikkei stock average squeezed out gains of 0.1 percent,
buoyed by Toyota Motor Corp <7203.T> and other exporters.
                                
 China's key stock index opened up 0.08 percent on Tuesday,
as traders added that the impact of the U.S. decision to impose
special duties on Chinese tyre exports would be limited.
                                
 "The impact of that trade war is only on equities. And
since oil is following equities, you could argue that the
impact is somewhat indirect," Shum added.
                                
 Oil prices would struggle to rise above $75 in the short
term because of plentiful product stocks as the U.S. autumn
season approached, Shum added.
                                
 "There is an overhang of distillates and fundamentals
remain weak. These factors will combine to keep a lid on oil
prices."
                                
 A preliminary Reuters poll ahead of weekly petroleum
inventory reports showed forecasts for a 2.7-million-barrel
drawdown in domestic crude stocks, a 1.5-million-barrel
increase in distillate supplies and an 800,000-barrel build in
gasoline stocks. [EIA/S]
                                
 Industry group the American Petroleum Institute (API) will
release its inventory data later on Tuesday, while the U.S.
Energy Information Administration, a government agency, will
issue its own report on Wednesday.
 (Editing by Clarence Fernandez)