* Milder U.S. winter sends oil down from 15-month peak
* China raises bank reserve requirements
* U.S. distillate stocks to fall, crude to rise
* World oil demand expected to rise in 2010
(Updates prices)
By Alex Lawler
LONDON, Jan 12 (Reuters) - Oil fell to below $82 a barrel on
Tuesday from a 15-month high as forecasts for milder weather in
the U.S. Northeast signalled lower demand in the world's largest
heating oil market.
The market also slipped as China raised banks' reserve
requirements in a move to head off increasing inflation
pressures. The tightening move weighed on European equities and
other commodities such as gold.
U.S. Northeast temperatures in the next six to 10 days will
be near to above normal, said DTN Meteorlogix. The National
Weather Service on Monday forecast heating oil demand would ease
to normal levels this week.
U.S. crude for February delivery <CLc1> fell $1.00 to $81.52
a barrel at 1518 GMT, after hitting $83.95 on Monday, the
highest intraday level since October 2008. Brent crude <LCOc1>
lost $1.04 to $79.93.
"I think the cold weather was just a psychological argument
to buy crude oil because supply is ample," said Carsten Fritsch,
analyst at Commerzbank.
Following Monday's high, "it's time for the financial
investors to take profits", he said. "The prospect of milder
temperatures may be another argument to take profit now."
China, the world's second-largest oil consumer, raised the
proportion of deposits that banks must hold in reserve by 0.5
percentage points, in the clearest sign yet that it has started
to tighten monetary policy.
For a graphic showing bank reserve ratio in China against
money supply growth, click here
http://graphics.thomsonreuters.com/0110/CN_CBRR0110.gif
BRIMMING INVENTORIES
While oil inventories are brimming due to a year of falling
global demand and ample supply, weekly U.S. data due on Tuesday
and Wednesday is expected to show the icy weather has eroded
stockpiles of distillates.
U.S. distillates inventories were forecast to have fallen
1.7 million barrels, a Reuters poll showed, their fifth-straight
weekly drop. Crude inventories probably rose 1.0 million
barrels. []
Tuesday also sees the release of the U.S. government's
monthly supply and demand forecast.
The report will say that U.S. and global oil demand will
increase in 2010 and 2011, but not as fast as in previous years,
according to advance details provided to Reuters.
[]
Oil has risen from just below $75 on Dec. 22 when the
Organization of the Petroleum Exporting Countries decided to
leave its output policy unchanged. It meets next in March, and
so far ministers are happy with the market.
The oil price is "fantastic" and oil demand is rising,
Kuwait's oil minister Sheikh Ahmad al-Abdullah al-Sabah told
reporters on Tuesday. "Next meeting will be the same... no
change of course," he said. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Keiron Henderson)
