* Coming up: EIA U.S. oil stock figures, 1430 GMT
* Tuesday's API data show fall in crude stocks
* Traders say low U.S. crude price is finding floor
(Updates prices)
By David Turner
LONDON, Aug 25 (Reuters) - The price of U.S. crude oil fell
close to a seven-week low on Wednesday, but staged a partial
recovery amid cautious trading ahead of closely watched oil
inventory figures from the U.S. government.
Oil was put under downward pressure after U.S. durable goods
data rose by less than expected. But traders were reluctant to
push the oil price down too far ahead of the Energy Information
Administration stocks numbers, due at 1430 GMT.
Analysts said Tuesday's 1.8 million barrel drop in U.S.
crude inventories reported by the American Petroleum Institute
could be confirmed by the EIA.
Traders also said oil might have been oversold after a sharp
fall in the price since early August.
"The API stats yesterday showed a drawdown in U.S. crude
inventories, which made people less convinced that the consensus
for crude inventory building holds," said Andy Sommer of energy
trading firm EGL in Switzerland.
"I think people are now going into a wait-and-see stance for
the EIA numbers." []
Sommer added: "With the price around $70, $72, $75, it will
be harder especially for more expensive oil producers to produce
economically, and that will provide a kind of floor for oil
prices."
U.S. crude <CLc1> for October delivery was down 18 cents on
the day to $71.45 a barrel by 1312 GMT, after trading as low as
$71.10.
October ICE Brent <LCOc1> fell 10 cents to $72.28 a barrel.
Oil markets were also put under downward pressure by the
poor showing of equities in Asia and Europe. <> []
<> []
Analysts say that oil is currently highly positively
correlated with shares.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on oil's correlation with equities, see:
http://graphics.thomsonreuters.com/gfx1/DTR_20102508083111.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
CRUDE INVENTORIES
U.S. crude stocks posted a surprise drop in the week ended
Aug. 20, according to a weekly report from the American
Petroleum Institute late on Tuesday. Forecasts for Wednesday's
EIA figures 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, increased by 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 since 1980 according to the agency's monthly data.
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. []
Forecasters have revised down their expectations of the oil
price both for this year and next, a Reuters poll revealed on
Wednesday. []
(Additional reporting by Alejandro Barbajosa; editing by Keiron
Henderson and Jane Baird)
