(Refiling to add link to Reuters Insider report)
* EIA: U.S. gasoline stocks up, hit 20-year high
* EIA: U.S. crude stocks rise less than expected
* Continuing Egypt unrest supports Brent above $100
* Coming up: OPEC, IEA monthly oil reports Thursday
(Updates with settlement prices, analyst quote, details)
By Gene Ramos
NEW YORK, Feb 9 (Reuters) - Brent crude rose near $102 a
barrel on Wednesday as unrest in Egypt kept investors worried
about potential supply disruptions, while rising inventories
weighed on U.S. oil prices.
U.S. government data showed domestic crude inventories rose
1.9 million barrels last week to 345.1 million barrels, less
than analyst expectations for a rise of 2.4 million barrels,
while gasoline inventories hit a 20-year high. []
The inventory builds helped push Brent's premium against
the U.S. crude futures to a fresh record above $15 a barrel,
surpassing the previous high of $13.06 hit on Tuesday.
<CL-LCO1=R>
In London, ICE March Brent <LCOH1> settled $1.90 higher at
$101.82 a barrel, after posting the day's high at $102.25.
U.S. crude for March delivery <CLH1> ended 23 cents lower
at $86.71 a barrel, off its session low of $86.36.
"Brent has strengthened further as there is a re-escalation
of the tensions in Egypt," said Rachel Ziemba, senior analyst
at Roubini Global Economics in London. "Brent is also being
supported by growing global demand for commodities, especially
in areas where that type of crude is used. In contrast, U.S.
WTI is weighed down by a supply surplus, a factor that has also
pushed up Brent."
In Egypt, protest organizers were working on a plan to move
on to the state radio and television building on Friday, the
day of the next big scheduled demonstration demanding that
President Hosni Mubarak step down. []
The protests have stirred concerns about oil supplies due
to the possibility that unrest could spread to oil producing
countries in the Middle East, although the shipments through
the Suez Canal have not been affected.
"Brent is still reflecting the market concern about Egypt
and the Suez Canal," said Tony Nunan, assistant general manager
with Mitsubishi Corp in Tokyo. "Oil supply to Europe via the
canal would have more impact than to the U.S."
HIGH INVENTORIES, LOW DEMAND
Weekly U.S. inventory data further stoked the bearish tone
for U.S. oil futures, with a report from the U.S. Energy
Information Administration showing gasoline stocks in the week
to Feb. 4 hitting 240.9 million barrels, the highest level
since March 16, 1990. []
The build came as gasoline demand over the past four weeks
fell by 0.3 percent compared with a year ago, while distillate
demand was off 0.1 percent.
(Reuters Insider on EIA http://link.reuters.com/qav87r)
"Overall, this data is bearish and the entire U.S. energy
market is fundamentally weak," said Bill O'Grady, chief
investment strategist at Confluence Investment Management in
St. Louis, Missouri.
U.S. crude fell with Wall Street, which edged lower as
investors pulled back following a five-month rally to
2-1/2-year highs. []
"Crude got a cue from equities, with S&P 500 dropping,"
said Robert Yawger, senior vice president at MF Global in New
York.
Oil traders often use equities' strength or weakness as a
barometer of future oil demand.
Meanwhile, concern for the high unemployment rate, a factor
that has kept oil demand weak, was underscored by U.S. Federal
Reserve Chairman Ben Bernanke, who told a congressional
committee that the labor market remains sluggish.
His testimony reinforced expectations that the Fed would
push ahead with its massive government debt buying program to
further stimulate the economy. []
(Additional reporting by Robert Gibbons in New York, Ikuko
Kurahone in London and Seng Li Ping in Singapore; Editing by
Walter Bagley)
