* U.S. consumer confidence drops
* EIA revises down U.S. July oil demand
* Analysts forecast U.S. oil inventory build
(Recasts, updates prices, market activity throughout,
changes dateline from LONDON)
NEW YORK, Sept 29 (Reuters) - Oil fell on Tuesday as U.S.
consumer confidence data weighed on markets and the government
revised down U.S. demand for July.
U.S. consumer confidence fell unexpectedly in September as
the worst job prospects in 26 years fueled worries over
personal finances, according to an industry report.
[]
Oil markets have looked to wider economic data and equities
markets for signs of a turnaround in the economy that could
lift slumping fuel demand.
U.S. stocks [] traded lower after firming earlier when
separate data showed U.S. single-family home prices rose in
July from the previous month. [] The dollar []
rebounded from an eight-month low.
U.S. crude futures <CLc1> traded down 24 cents to $66.60 a
barrel by 12:36 EDT (1636 GMT). London Brent crude futures
<LCOc1> fell 20 cents to $65.34 a barrel.
"It seems pretty apparent that the market is tracking
equities once again," said Gene McGillian, analyst, for
Tradition Energy in Stamford, Connecticut.
"Earlier today the market opened weak, once the home index
came out the market turned around and seemed to gain some
confidence that maybe some of the economic conditions are
improving. That quickly dissipated after consumer confidence
was reported to have fallen."
Further pressure came after the U.S. Energy Information
Administration revised down its estimate for July U.S. oil
demand by 133,000 barrels per day to 4 percent below year-ago
levels, marking the lowest July level in 13 years.
[]
Slowing demand in the United States and other developed
economies knocked crude off record highs near $150 a barrel in
July 2008 to below $33 a barrel in December. Crude has since
found support on expectations of an economic rebound.
Traders were also keeping an eye on tensions between the
West and OPEC member Iran over Tehran's nuclear program.
Iran said it would refuse to discuss a newly declared
nuclear plant at forthcoming international talks and cautioned
Western powers it could curb cooperation further if they
repeated "past mistakes". []
Washington has suggested possible new sanctions on banking
and the oil and gas industry if Tehran fails to assuage Western
fears it seeks nuclear weapons. U.S. officials believe
sanctions could now have more effect, playing on leadership
divisions evident since a disputed presidential poll.
The market was also awaiting weekly U.S. inventory reports,
with analysts forecasting a 500,000 barrel build in crude
stocks for the week to Sept. 25, along with a 1.1 million
barrel increase in both gasoline and distillates.
The American Petroleum Institute's report will be released
late on Tuesday, with the EIA's report due out on Wednesday.
(Reporting by Matthew Robinson, Gene Ramos, and Robert
Gibbons in New York; Ikuko Kurahone in London; Ramthan Hussain
in Singapore; Editing by David Gregorio)
