* Oversold U.S. crude helps prices to rebound -RSI
* Technicals show possible bounce to $72.90 []
* Coming Up: U.S. durable goods orders for July; 1230 GMT
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, Aug 25 (Reuters) - Crude bounced from a
seven-week low on Wednesday as investors looked for relief in
U.S. durable goods and oil inventory reports due later in the
day, after fears of a double-dip recession intensified with
dismal housing data.
U.S. crude <CLc1> for October delivery added 27 cents to
$71.90 a barrel by 0643 GMT, after trading as low as $71.32,
replicating Tuesday's trough, which was the lowest intraday
price since July 6. The front-month contract on Tuesday ended
at $71.63, the lowest settlement since June 7.
October ICE Brent <LCOc1> rose 38 cents to $72.76 a
barrel.
Oil slid 2 percent on Tuesday on news that sales of
previously owned U.S. homes dropped by a record 27.2 percent in
July, sending global equities to one-month lows. Japan's Nikkei
average fell to its lowest in 16 months on Wednesday after the
yen hit a 15-year high versus the dollar a day earlier. []
But U.S. crude stockpiles unexpectedly fell last week, an
industry report showed late on Tuesday, stirring hopes that
government statistics due Wednesday would show an improvement
in oil demand by the world's largest user.
"The double-dip worries are everywhere at the moment and
this is weighing on market sentiment," said Stefan Graber, a
commodities analyst with Credit Suisse in Singapore.
"What could bring some relief would be an improvement in
U.S. oil consumption figures. Durable goods orders could also
be an important number today, and in case we see positive data,
this could ease the immediate concerns and spill into the oil
market."
The front-month U.S. crude contract touched oversold
territory for the first time in three months on Tuesday,
according to the relative strength technical indicator, which
signals a rebound is to be expected. For a graphic:
http://graphics.thomsonreuters.com/gfx1/ABE_20102508095322.jpg
"We think that the current sell-off in oil is a bit
overdone," Graber said. "The U.S. is still showing considerable
pockets of weakness, but if we look at the global picture, the
outlook is more constructive."
U.S. crude stocks posted a surprise drop of 1.8 million
barrels in the week ended Aug 20, according to a weekly report
from the American Petroleum Institute late on Tuesday, ahead of
government statistics to be released on Wednesday by the Energy
Information Administration at 1430 GMT. Forecasts are for a
200,000-barrel gain, a Reuters poll showed.
But U.S. gasoline stockpiles unexpectedly rose by almost
700,000 barrels last week, the API said, while inventories of
distillate fuel, including diesel, rose a larger-than-predicted
1.9 million barrels.
Last Wednesday, the EIA said U.S. combined commercial
stockpiles of crude and refined products in the week to Aug. 13
hit the highest level since weekly records began in 1990, and
the highest level since 1980 according to the agency's monthly
data.
On Tuesday, MasterCard said U.S. weekly retail gasoline
demand fell 1.2 percent in the week ending Aug. 20, despite
lower prices. []
Total U.S. crude trading volume was at more than 555,700 on
Tuesday, surpassing Monday's 415,365 total, but slightly below
the 30-day average of more than 587,500 per session.
U.S. RBOB gasoline futures on Tuesday touched $1.8368 a
gallon, the lowest intraday price since December 2009,
rebounding to $1.8548 on Wednesday.
Hurricane Danielle in the central Atlantic Ocean
unexpectedly weakened again and was downgraded to a tropical
storm, the U.S. National Hurricane Center said in its latest
advisory. [ID:nN24275848
(Editing by Clarence Fernandez)
