* Rising U.S. crude, fuel stocks weigh
* Weak euro pressures oil prices
* Concern Greek crisis could spread to Portugal, Spain
* Coming Up: U.S. EIA weekly oil stocks data
(Updates prices, adds detail)
By David Sheppard
LONDON, May 5 (Reuters) - Oil slipped further to $82 a
barrel on Wednesday, extending the steepest one-day loss in
three months as the unfolding crisis in Greece rattled markets
and mounting U.S. crude oil inventories pointed to soft demand.
Rising concern that Greece's debt crisis could spill over
into other euro zone countries and derail the global recovery
have seen oil futures shed almost a quarter of the last three
months' gains since hitting a 19-month peak above $87 on Monday.
"Commodities got thrashed on Tuesday, and even energy, which
has been holding up relatively well over the last few days on
account of the Gulf oil spill, lost the largest amount of ground
in over three months," MF Global analyst Edward Meir said.
"None of the commodity complexes could withstand the
withering rally we saw in the dollar/euro market, where the
greenback soared to break below the $1.30 mark against the euro
to stage one of its sharpest rallies in some time."
Dollar-priced commodities like oil are undermined by
strength in the greenback as they become more expensive for
holders of other currencies. Rising risk aversion is also a
factor as investors pull money out of volatile assets like oil.
[]
On Wednesday, Finland's finance minister said there is a
risk Greece's financial problems could spread to Spain or
Portugal, while a senior member of Germany's ruling party said
concerns remain that an international aid package for Greece
could fail. [] []
U.S. crude for June delivery <CLc1> was down 23 cents at
$82.510 a barrel by 0929 GMT. London Brent crude <LCOc1> was
flat at $85.65 a barrel
The euro fell to its lowest level against the dollar since
April 2009 on Wednesday, touching $1.2935.
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For a graphic on dollar/oil correlation, click
http://graphics.thomsonreuters.com/gfx/RSW_20100405150342.jpg
For a technical chart, click:
http://graphics.thomsonreuters.com/gfx/WT_20100505084256.jpg
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DEMAND WEAKNESS
"The main influences now are the rise in the dollar, the
sovereign concerns in the euro zone spreading into Portugal and
Spain. I think a pretty important factor though, going forward,
is the build in oil stocks in the United States," said Ben
Westmore, an analyst at National Australia Bank.
Crude oil inventories in the world's largest energy
consumer rose by 3 million barrels in the week to April 30, the
American Petroleum Institute said on Tuesday. Analysts polled by
Reuters had predicted a 1.1 million barrel rise.
Gasoline stocks also rose, climbing by 1.5 million barrels
against analyst expectations for a 200,000 barrel build.
Figures from the U.S. government's Energy Information
Administration are due at 1430 GMT on Wednesday.
U.S. demand for gasoline at the pumps, which makes up more
than 10 percent of total world oil demand, was down 2.3 percent
on last year in the week to April 30, the Mastercard
SpendingPulse report showed on Tuesday.
Teams of oil spill workers were set to take to advantage of
at least one more day of calm in the Gulf of Mexico on Wednesday
to keep fighting to contain a huge and growing slick before
winds turn against them. []
Crude oil prices have not been seriously affected from the
oil spill after a deadly April 20 rig explosion triggered a
breach in BP's <BP.L> well.
(Additional reporting by Judy Hua in Singapore; editing by
Amanda Cooper)
