NYMEX-Crude sinks below $79 after stock build

                                
 TOKYO, Oct 21 (Reuters) - U.S. crude futures dropped under
$79 a barrel on Wednesday, adding to losses from the previous
day, after an industry report showed that U.S. crude oil
inventories rose more than expected last week.
                                
 FUNDAMENTALS
                                
 * NYMEX crude for December delivery <CLc1> was down 31 cents
at $78.81 a barrel by 0012 GMT, after the American Petroleum
Institute said late on Wednesday crude stocks rose 3.8 million
barrels, far more than the 1.8 million barrel build forecast in a
Reuters poll. [API/S] [EIA/S]
                                
 The Energy Information Administration (EIA), a U.S.
government agency, will issue its own report later on Wednesday.
                                
 * U.S. crude for November delivery, which expired on Tuesday,
fell 52 cents to settle at $79.09 a barrel as disappointing U.S.
data on housing and inflation weighed on prices, snapping eight
days of gains for crude. [ID:nNSP209223]
                                
 * Oil prices will probably stay strong over the coming
months, driven by expectations of growing demand and a relatively
high level of OPEC output discipline, BP's chief economist said
late on Tuesday. [ID:nLK498253]
                                
 MARKETS NEWS
                                
 * Japan's Nikkei average edged down 0.3 percent on Wednesday
after anaemic U.S. data prompted concerns about the pace of
economic recovery and set off profit-taking on Wall Street.
[.T]
                                
 * The dollar bounced back from a 14-month low against a
basket of currencies in volatile trading on Tuesday as
policymakers in Europe and Asia commented on the greenback's
decline and options-related buying kept it from pushing though
key levels. [FRX/]
                                
 * The 19-commodity Reuters-Jefferies CRB index <.CRB>, which
tracks 19 mostly U.S.-traded commodity markets, fell 0.5 percent
on Tuesday, as the dollar's recovery and disappointing U.S. data
triggered profit-taking in several markets. [COM/WRAP]
                                
 DATA/EVENTS
                                
 * The following data is expected on Wednesday:
                                
 - Weekly U.S. Mortgage Market Index                (1100 GMT)
                                
 - EIA Weekly U.S. Oil Stocks and Output Data       (1430 GMT)
                                
 - U.S. Federal Reserve Beige Book Release          (1800 GMT)
                                
 RELATED NEWS
> Fed's Yellen:No tightening in next several months  [nN20459802]
> US housing, price data points to sluggish recovery [nN20424995]
> US carbon tariffs focus premature - Chu            [nN20444675]
> Iraq picks up pace on oil deals, elections loom      [nLJ14118]
> Oil falls from 1-yr high over $80, US data weighs  [nNSP209223]
                                
 PRICES
 Oil prices as of 0012 GMT          
 Contract Mnth    Price  Change  Day ago     pct     MA-20*
 NYMEX Contracts
 US Crude DEC9   $78.81   -0.31   -$0.84  -1.05%     $71.88
 Heat Oil NOV9   203.95   -0.78    -0.49  -0.24%     184.62
 RBOB     NOV9   197.82   -0.95    +0.05  +0.03%     178.17
 Natgas   NOV9   $5.168  +0.007  +$0.326  +6.74%     $4.605
 ICE Contracts
 Brent    DEC9   $76.95   -0.29   -$0.53  -0.68%     $70.11
 Gasoil   NOV9      NA            +$4.50  +0.71%    $573.98
 Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
 * = 20-day moving average for continuation month.
 (Reporting by James Topham; Editing by Joseph Radford)