UPDATE 6-Oil falls towards $78; storm concerns ease

                                
 * Tropical storm Alex expected to become hurricane
                                
 * Shell, BP evacuate personnel from some U.S. platforms
                                
 * Coming Up: US May personal spending; 1230 GMT
                                
 * For a technical view, click on [ID:nSGE65R00E]
 
                                
 (Updates prices, adds quote paragraphs 7-8)
                                
 By Alex Lawler
                                
 LONDON, June 28 (Reuters) - Oil fell towards $78 a barrel on
Monday, after earlier touching the highest in almost eight
weeks, as concern eased about the impact on supply from tropical
storm Alex.
                                
 Over the weekend, Alex became the first named storm of the
2010 Atlantic hurricane season, which forecasters expect to be
active. They said the storm could become a hurricane on Monday
or Tuesday.
                                
 U.S. crude for August <CLc1> was down 57 cents at $78.29 as
of 1108 GMT. It earlier rose as high as $79.38, the highest
intra-day price since May 6. August Brent crude <LCOc1> was down
72 cents at $77.40.
                                
 "It's profit-taking after the near two-month high and the
failure to reach the $80 level," said Carsten Fritsch, an
analyst at Commerzbank.
                                
 "The market is oversupplied. Given the high level of
stockpiles, any supply disruptions (caused by the storm) could
be met easily as long as they are short-lived."
                                
 OPEC Secretary General Abdullah al-Badri on Sunday put the
"inventory overhang" and oil held in storage on tankers at about
244 million barrels -- equal to almost three days' of global oil
demand. [ID:nLDE65Q0I8]
                                
 "Many changes can still occur in the next 48 hours, and that
is why weather markets are volatile," said Olivier Jakob, an
analyst at Petromatrix.
                                
 "But we start the week with a storm picture that should be
if still a concern, a lesser one than at the end of last week".
                                
 
                                
 SOME U.S. GULF OUTPUT SHUT
                                
 European equities rose on Monday and the U.S. dollar was
slightly higher against a basket of other currencies as
investors assessed the implications of a G20 meeting. Gold rose
to near its record high.
                                
 World leaders agreed on Sunday to take different paths for
cutting budget deficits and making their banking systems safer,
a reflection of the uneven and fragile economic recovery in many
countries. [ID:nN26228300]
                                
 Mexico closed two of its main Gulf of Mexico oil exporting
terminals on Sunday as Alex moved over the Yucatan peninsula,
the government said.
                                
 The ports of Cayo Arcas and Dos Bocas typically handle
combined exports of more than 1.1 million barrels per day (bpd),
or about 80 percent of Mexico's shipments abroad, which mainly
head to U.S. refineries. [ID:nN27240392]
                                
 Shell Oil  <RDSa.L> shut subsea production at two platforms,
and BP <BP.L><BP.N> evacuated some personnel from three Gulf of
Mexico platforms, the companies said on Sunday. [ID:nN27622581]
                                
 The U.S. National Oceanic and Atmospheric Administration
forecasts 14 to 23 named storms for this year's season, with
eight to 14 developing into hurricanes. Three to seven of those
could be major Category 3 or above hurricanes. [ID:nN2798815]
                                
 Traders and investors also are seeking evidence that the
world's largest economy continues to recover. U.S. May personal
spending data is due at 1230 GMT on Monday and June unemployment
statistics are to be published on Friday.
 (Additional reporting by Alejandro Barbajosa; Editing by Jane
Baird and Alison Birrane)