* EIA report shows surprise fall in gasoline, higher crude
* European stocks rise as Spain takes austerity measures
* IEA trims 2010 global oil demand growth forecast
* Cushing stocks depress U.S. crude relative to Brent
(Recasts with EIA inventory report, updates prices, adds
quote paragraph 3)
By Alex Lawler
LONDON, May 12 (Reuters) - Oil fell towards $75 a barrel in
volatile trade on Wednesday after a U.S. government report
showed a larger than expected rise in crude stockpiles in the
world's top consumer.
U.S. crude stocks rose by 1.9 million barrels, the Energy
Information Administration said in its latest weekly report,
more than analysts expected. Gasoline supplies, expected to
rise, declined by 2.8 million barrels.
"There's still lots of crude around, and demand's not that
great. Demand's improving overall, but there's still a lot of
product out there," said Kyle Cooper of IAF Advisors in Houston.
U.S. crude <CLc1> for delivery in June fell $1.15 to $75.22
a barrel as of 1532 GMT, having fallen to as low as $74.91
earlier in the session. Brent crude <LCOc1> was down 11 cents at
$80.38.
Oil gained support earlier in the session from a stronger
euro relative to the dollar <EUR=> and rising equities. Spain
became the latest euro zone country to unveil austerity
measures, easing concerns over euro-zone sovereign debt woes.
The EIA report released at 1430 GMT also said inventories at
Cushing, Oklahoma, the hub for NYMEX crude deliveries, rose
again, adding to already record high levels. Stocks at Cushing
have depressed U.S. crude relative to Brent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graph on Brent's premium over U.S. crude:
http://graphics.thomsonreuters.com/gfx/NT_20101205134402.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
The EIA report followed that of industry group the American
Petroleum Institute, which said on Tuesday crude stocks rose by
a less-than-expected 362,000 barrels and gasoline stocks posted
a surprise drop of 906,000 barrels.
Demand has been slow to catch up with ample supply.
The International Energy Agency (IEA) on Wednesday trimmed
its oil demand forecast. Global demand growth this year will be
50,000 barrels per day (bpd) lower than expected, the IEA,
adviser to 28 industrialised countries, said in a report.
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, in response to expectations global economic
recovery would boost demand after two straight years of
declines.
(Additional reporting by Alejandro Barbajosa in Singapore and
Reuters energy desk in New York; editing by Barbara Lewis)
