* Poll says Crude stocks rose last week, curbs oil prices
* OPEC signals output policy change unlikely at meeting
* Dollar slumps late after Federal Reserve minutes
* Coming Up: API oil inventory data, 4:30 p.m. EDT Wed
(Recasts, updates with settlement prices, market activity)
By Robert Gibbons
NEW YORK, Oct 12 (Reuters) - Oil prices slipped a second
straight session on Tuesday as OPEC signaled it will keep
output targets steady when the group meets this week and
investors worried about weak fundamentals highlighted by high
inventories and lackluster demand.
The U.S. Federal Reserve released minutes from its
September meeting, which showed Fed officials believed the
struggling recovery might need further help soon and they
discussed how that might be done. []
The dollar slumped after the Fed minutes release, though
the greenback's early strength had helped pressure oil prices.
A stronger dollar makes dollar-denominated commodities more
expensive for buyers using other currencies and strengthens the
value of greenbacks paid producers.
The dollar's late drop was not enough to offset sentiment
that economic recovery remains tepid and expectations that U.S.
crude oil stocks rose last week, with crude and refined oil
stocks already above year-ago levels.
U.S. crude for November <CLc1> delivery fell 54 cents, or
0.66 percent, to settle at $81.67 per barrel, having traded
from $80.88 to $82.33.
In London, ICE Brent November crude <LCOc1> fell 22 cents
to settle at $83.50 a barrel.
"Crude finished lower because people took a breather,
despite the dollar weakening after the Fed minutes," said Chris
Dillman, analyst at Tradition Energy in Stamford, Connecticut.
"There are not enough bids when crude gets up around $83
and people are not convinced oil needs to be this high given
the fundamentals."
A couple of economic reports released on Tuesday pointed to
an economic recovery still struggling.
The Conference Board's gauge of the U.S. job market fell in
September, suggesting job growth will remain slow and more
losses are possible. []
MasterCard said U.S weekly retail gasoline demand fell 0.7
percent last week versus the previous week and was only 0.1
percent better than the year-ago period. []
OPEC MEETS THURSDAY
Saudi Arabian Oil Minister Ali al-Naimi on Monday said he
was happy with the oil market, as he arrived in Vienna for
Thursday's meeting of the Organization of the Petroleum
Exporting Countries, the group's first in seven months.
He described crude prices between $70 and $80 as "ideal."
[]
On Tuesday, a senior Gulf OPEC delegate told Reuters that
oil prices slightly above $80 a barrel were not a threat to the
world economy, although he declined to say at what point the
oil price could affect recovery. []
U.S. INVENTORIES
An expanded Reuters poll on Tuesday yielded a forecast for
U.S. crude stockpiles to be up for a second straight week, by
1.2 million barrels in the week to Oct. 8, due to higher
imports. Distillate and gasoline stockpiles were expected to be
lower. []
Industry group the American Petroleum Institute will issue
its oil inventory report on Wednesday at 4:30 p.m. EDT (2030
GMT), delayed a day by Monday's U.S. Columbus Day holiday.
The government's report from the U.S. Energy Information
Administration is due on Thursday at 11 a.m. EDT (1500 GMT),
also delayed a day by the holiday.
FRENCH STRIKES
Europe's refined products prices continued to be supported
as French oil refineries cut output and a nationwide strike
further choked supplies. Workers at major ports and eight out
of 12 French refineries were on strike. []
A spokesman for French oil-sector lobby UFIP said French
fuel stations could face shortages in just over a week, if an
oil port strike continues. []
(Additional reporting by Zaida Espana and Joe Brock in London
and Alejandro Barbajosa in Singapore; Editing by David
Gregorio)
