* IEA trims 2010 global oil demand growth forecast
* Cushing stocks depress U.S. crude relative to Brent
* China should raise interest rates-central bank adviser
* Coming Up: EIA inventory report 1430 GMT
(Updates prices)
By Alex Lawler
LONDON, May 12 (Reuters) - Oil fell towards $76 a barrel on
Wednesday after the International Energy Agency (IEA) trimmed
its 2010 oil demand forecast and as investors awaited U.S.
inventory data expected to show rising supplies.
Global oil demand growth this year will be 50,000 barrels
per day (bpd) lower than expected, the IEA, adviser to 28
industrialised countries, said in its monthly report. The
agency's chief economist said the effects of the Greek debt
crisis will cut European gas and oil demand.
"We've seen a shift in sentiment and sentiment is still
bearish," said Carsten Fritsch, analyst at Commerzbank.
"The main reasons are questions regarding the stability of
the eurozone and whether these optimistic demand forecasts will
be met given this new uncertainty."
U.S. crude <CLc1> for delivery in June was down 27 cents at
$76.10 a barrel as of 1102 GMT, having fallen as low as $75.42
earlier in the session. Brent crude <LCOc1> was up 50 cents at
$80.99.
The euro <EUR=> strengthened and European shares rose after
Spain became the latest euro zone country to unveil austerity
measures, despite figures showing the single currency economy
got off to a weak start in 2010.
Brent crude's unusual premium to U.S. crude ballooned
overnight after industry group the American Petroleum Institute
(API) said crude stockpiles at the Cushing, Oklahoma pricing
point, rose to a record high last week.
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http://graphics.thomsonreuters.com/gfx/NT_20101205134402.jpg
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The discount of the front-month U.S. contract to the second
month also widened sharply overnight.
ROLLER COASTER
Oil prices have been volatile since the European Union
announced a rescue package for the bloc's debt-stricken nations
totalling almost $1 trillion two days ago.
U.S. crude had touched $87.15 on May 3, its highest level in
almost 19 months, on optimism that the global economic recovery
would boost demand after two straight years of declines.
The IEA on Wednesday repeated its warning about the risks of
rising prices to the economy.
Oil could be a "major difficulty" for economic recovery at
above $80 per barrel, IEA Chief Economist Fatih Birol told
Reuters in an interview.
Government data on U.S. inventories will be released at 1430
GMT on Wednesday. The report is expected to show a
1.3-million-barrel increase in crude supplies.
On Tuesday, the API said crude stocks rose by 362,000
barrels. Inventories at Cushing gained 783,000 barrels.
Accelerating inflation has increased pressure on China, the
world's second-largest oil user after the United States, to
tighten monetary policy and let the yuan appreciate against the
dollar.
China should raise benchmark deposit rates as a defensive
move to stabilise inflation expectations, a central bank adviser
said in comments published on Wednesday.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Amanda Cooper)
