* U.S. braces for dire earnings season
* U.S. crude stocks expected to rise by 2.1 mln barrels
* Flow through Kirkuk-Ceyhan pipeline resumes
(Updates prices, adds details, changes dateline from
LONDON)
By Edward McAllister
NEW YORK, April 7 (Reuters) - Oil fell below $50 a barrel
on Tuesday, tracking U.S. stock market losses ahead of what is
expected to be a miserable first-quarter earnings season.
U.S. stocks fell on Tuesday as earnings for S&P 500
companies were expected to fall by 36.7 percent, according to
ThomsonReuters data. []
U.S. aluminum company Alcoa Inc <AA.N> will kick off the
results season after the Wall Street close Tuesday with an
expected second consecutive quarterly loss, spelling out
continued weakness in world energy demand. []
U.S. light crude for May delivery <CLc1> fell $1.25 at
$49.80 a barrel by 12:12 EDT (1612 GMT). London Brent crude
<LCOc1> fell 66 cents to $51.58.
Crude oil prices have been closely tracking the fortunes of
broader markets as investors look for clues as to when oil
demand might rebound.
"I think the road to recovery is a long one, and while we
await a recovery, global oil demand will be weak," Bache
Commodities broker Christopher Bellew said.
U.S. chief executives' confidence in the economy hit a
second consecutive all-time low in the first quarter, according
to a Business Roundtable survey released on Tuesday.
[]
European turned lower on Tuesday, falling for the third
consecutive session as figures showed the euro zone shrank by
more than previously thought in the fourth quarter. []
The global recession has cut oil demand around the world,
with consumption expected to be curbed for the first time since
the early 1980s.
The resumption of oil flow through the Kirkuk-Ceyhan oil
pipeline also pressured prices.
Oil flow through the pipeline, which carries more than a
fifth of Iraqi crude to the Turkish Mediterranean coast, had
resumed on Monday, a source at the Turkish pipeline operator
told Reuters.
Strength in the dollar also weighed, as commodities prices
in the U.S. currency become more expensive for overseas
investors.
U.S. INVENTORIES
Little upside is expected from weekly U.S. inventories data
due on Tuesday and Wednesday, with oil analysts predicting yet
another increase in crude stocks because of high import levels
and weak demand from domestic refiners. []
A preliminary forecast of seven analysts called for a 2.1
million barrel rise in crude stocks, which are already running
at a 16-year high, according to the U.S. Energy Information
Administration (EIA).
Gasoline stocks could fall by 1 million barrels, and
distillates by 0.4 million barrels, mainly due to lower
refinery production. Demand may have dipped too, analysts
added.
The American Petroleum Institute will release its report on
Tuesday at 2030 GMT, while the EIA -- whose data is generally
seen as more comprehensive -- releases its report at 1530 GMT
on Wednesday.
Oil prices have gained roughly 40 percent since
mid-February as equities markets rose and OPEC producers cut
output, though oil's gains have been limited by continued weak
global demand and rising inventory levels.
(Reporting by Edward McAllister; Editing by Lisa Shumaker)
(Additional reporting by Robert Gibbons and Gene Ramos in New
York, David Sheppard in London, Maryelle Demongeot in
Singapore)
