SINGAPORE, Sept 21 (Reuters) - Oil fell on Tuesday,
resuming last week's trend and erasing part of the previous
session's 1.6 percent gain, on lingering worries about the U.S.
economy ahead of a U.S. Federal Reserve meeting later in the
day.
FUNDAMENTALS
* U.S. crude for October <CLc1> fell disproportionally
compared with contracts further out, ahead of its expiration
later on Tuesday. The contract lost 42 cents to $74.44 a barrel
at 0113 GMT, while the November contract shed 8 cents to
$76.10. ICE Brent <LCOc1> for November gained 8 cents to
$79.40.
* Prices of U.S. crude on Monday tracked equities higher,
but the gains came in thin trade, with the total number of
contracts trading hands about 25 percent below the average
volume over the last 30 days, according to Reuters data.
* The Federal Reserve is expected to tread water at a
policy-setting meeting later today with a renewed promise to
keep its portfolio from shrinking but no new steps to ease
monetary policy. []
* The U.S. recovery is so soft that it risks creating a
"frustrated generation" of young people unable to find work
despite having heeded advice to stay in school, a senior
official from the Organization for Economic Cooperation and
Development said on Monday. []
* U.S. home-builder sentiment remained stuck at a
1-1/2-year low in September, the latest suggestion the sector
is in for a painful and prolonged climb back to health.
[]
* U.S. crude inventories probably fell by 1.9 million
barrels last week due to lower imports from Canada because of
the Enbridge pipeline outage and as tankers navigated around
stormy weather, a Reuters survey of analysts showed on Monday.
* Distillate stocks, which include heating oil and diesel,
were expected to rise by about 300,000 barrels, after three
weeks of drawdowns, the poll showed. Gasoline inventories were
estimated to be little changed, off by only 100,000 barrels,
according to the survey.
* Industry group the American Petroleum Institute will
publish inventory data for the week to Sept. 17 on Tuesday at
2030 GMT, followed by government statistics from the U.S.
Energy Information Administration on Wednesday at 1430 GMT.
MARKETS NEWS
* Japan's Nikkei average rose 0.6 percent on Tuesday,
hitting a seven-week intraday high, with resource-related
shares such as Mitsubishi Corp <8058.T> rising after oil, gold
and other commodities rose the previous day. []
* World stocks rallied on Monday as the U.S. benchmark S&P
500 index broke above a key technical level, lifted by optimism
over corporate news, but the dollar slipped on fears the
struggling U.S. economy needs further stimulus. []
DATA/EVENTS
* The following data is expected on Tuesday, GMT:
- China Final Commodity Trade Data Aug 1145
- U.S. ICSC chain stores yy Weekly 1230
- U.S. Build permits: change mm Aug 1230
- U.S. House starts mm: change Aug 1230
- U.S. Housing starts number mm Aug 1300
- Eurozone Euroilstock refinery output Aug 1815
- U.S. FOMC rate decision 2030
- U.S. API weekly oil stocks 2030
RELATED NEWS
* The U.S. National Hurricane Center said there was a high
or 90 percent chance of a new tropical cyclone developing west
of the Cape Verde Islands in the eastern Atlantic over the next
48 hours, as the 2010 Atlantic hurricane season continued an
active pace. []
(Reporting by Alejandro Barbajosa; Editing by Manash Goswami)
