* EIA revises downward U.S. July oil demand
* U.S. gasoline demand up 0.9 pct last week-MasterCard
* Analysts forecast U.S. oil inventory build
(Updates prices, inventory poll, adds MasterCard SpendingPulse
data in paragraph 9)
NEW YORK, Sept 29 (Reuters) - Oil prices fell slightly on
Tuesday as U.S. consumer confidence data weighed on markets and
the government revised downward 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 on data
showing 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 13 cents at $66.71 a
barrel by 2:27 p.m. EDT (1827 GMT). In London, Brent crude
futures <LCOc1> fell 9 cents to $65.45 a barrel.
"It seems pretty apparent that the market is tracking
equities once again," said Gene McGillian, an analyst at
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 downward 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.
[]
U.S. retail gasoline demand rose 0.9 percent last week
compared with the previous week, however, according to a
MasterCard SpendingPulse report. []
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 Iran's
banking and oil and gas industries 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 election in Iran.
The oil market was also awaiting weekly U.S. inventory
reports, with analysts forecasting a 600,000-barrel build in
crude stocks for the week to Sept. 25, while gasoline and
distillate inventories were also seen higher. []
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 Walter Bagley)
