SINGAPORE, March 8 (Reuters) - U.S. crude slid from a
2-1/2-year peak on Tuesday on growing concern that economic
growth in oil-importing emerging markets may slow on sustained
high prices triggered by unrest across the Middle East and North
Africa.
As much as 1 million barrels of Libyan output has been
disrupted by clashes between Muammar Gaddafi and rebels, or
about two-thirds of normal production. That is just above 1
percent of global daily consumption.
The concern is that violence and supply disruptions may
spread to other countries in the region. But so far oil is
flowing as usual from the world's biggest producers in the
Mideast Gulf. Saudi Arabia, the world's top exporter, has
increased production to at about 9 million barrels per day.
U.S. crude closed above $105 on Monday, its highest since
September 2008, buoyed by traders who sold Brent and bought West
Texas Intermediate, unwinding a popular trade that had blown out
to a record $17 a barrel last week.
The Brent/WTI <CL-LCO1=R> spread has shrunk by more than $7
since then, ending Monday at its narrowest since January.
On Tuesday, U.S. crude for April slipped 25 cents to
$105.19 a barrel at 0102 GMT, while ICE Brent fell 11 cents to
$114.93.
If crude oil prices stay high for an extended time, analysts
said, Asian countries from China to India might not be able to
sustain the growth pace that has driven the global economy.
FUNDAMENTALS
* OPEC ministers are holding informal consultations about
oil prices and the Libyan crisis, but the group is not planning
to hold an emergency meeting, an OPEC delegate said on Monday.
* Major U.S. oil companies have halted trade with Libya and
big banks have started to pull back from funding such deals
because of U.S. sanctions, in moves that will further disrupt
oil flows from the torn country.
* Major Libyan oil ports Ras Lanuf and Brega in the east of
the country are closed as violence in the area has hampered
operations at the terminals, shipping sources said on Monday.
* But a coordinated release of strategic oil stocks by OECD
economies is not yet needed because the oil supply disruption
caused by an uprising in Libya remains limited on a global
scale, the International Energy Agency (IEA) said on Monday.
* The White House said on Monday the price of oil was one
factor -- but not the only factor -- that would be used when
determining whether the United States will tap its strategic oil
reserve.
* U.S. crude oil stockpiles could have risen modestly last
week as imports likely rose, a preliminary Reuters poll ahead of
weekly inventory reports showed on Monday.
* On average, crude inventories added 300,000 barrels in the
week to March 4, after a surprise drawdown the week before, the
poll of nine analysts showed.
* Gasoline stocks were forecast down 1.3 million barrels, on
average, as demand improved and imports likely fell, the
analysts said.
* Distillate stocks, which include heating oil and diesel
fuel, likely dipped 1.3 million barrels, on average, with demand
likely higher on late winter cold.
* The industry group American Petroleum Institute will issue
its weekly inventory report on Tuesday, at 2130 GMT, followed by
government statistics from the U.S. Energy Information
Administration on Wednesday, at 1530 GMT.
MARKETS NEWS
* Global stocks fell on Monday as the growing violence in
Libya and worries about other Middle Eastern countries drove
prices of U.S. crude and gold higher, raising concerns about the
global economic recovery.
* The euro struggled to make much headway early in Asia on
Tuesday after its rally stalled just above $1.40 overnight,
helping an oversold dollar edge off four-month lows against a
basket of major currencies.
DATA/EVENTS (GMT)
* The following data is expected on Tuesday:
1245 U.S. ICSC chain stores yy Weekly 1600
U.S. EIA Short-Term Energy Outlook Mar 2130 U.S. API
petroleum stocks** Weekly
(Reporting by Alejandro Barbajosa; Editing by Ed Lane)
