Corrects to change days in second and third paragraphs)
* Fundamentals deter some investors from flooding into oil
* Technicals shows prices may target $84 []
* Coming Up: U.S. EIA weekly inventory report; 1430 GMT
By Alejandro Barbajosa
SINGAPORE, Oct 6 (Reuters) - Oil slipped from a five-month
high on Wednesday after an industry report showed U.S. crude
stockpiles jumped more than forecast last week, a sign
oversupply may persist despite central bank efforts to shore up
economies.
Front-month U.S. crude <CLc1> on Tuesday touched $82.99 a
barrel, the highest price since early May, after the Bank of
Japan cut interest rates, bolstering hopes that the U.S.
Federal Reserve will early next month announce a second round
of so-called quantitative easing measures to boost growth.
The November contract on Wednesday fell as much as 31 cents
to $82.51 and was down 25 cents at $82.57 by 0230 GMT. ICE
Brent for November <LCOc1> shed 16 cents to $84.68.
"It's just profit taking after a sharp rise last night,"
said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
"The crude inventory data coming out of the API was quite
weak. We are still wondering if the economic situation will
turn to a more positive side, we can't see any facts yet."
U.S. crude inventories gained 4.4 million barrels in the
week to Oct. 1, the American Petroleum Institute (API) reported
late on Tuesday, compared with average analyst expectations for
a 300,000-barrel increase in a Reuters survey. [] []
Prices of U.S. crude over the past week topped the $70-$80
range for the first time in almost two months as investors
anticipated central banks would embark on a second round of
expansionary monetary policy to infuse stamina into an anaemic
recovery.
"We cannot fight the price rise, so just follow it up,"
Emori said. Still, "more fundamental evidence should be
necessary to persuade investors to throw more money into oil."
MIXED ECONOMIC SIGNALS
The pace of growth accelerated in the dominant U.S.
services sector last month even as it slowed among Chinese and
European firms, boosting hopes that the sluggish U.S. economy
wasn't stagnating. []
But U.S. hiring is still weak and the jobless rate stands
at 9.6 percent. The strong services data may not deter the Fed
from trying in coming weeks to boost growth by pumping more
money into the economy. Key monthly non-farm payrolls data is
due on Friday.
Government statistics on oil inventories and demand will
follow from the Energy Information Administration on Wednesday
at 1430 GMT.
Stockpiles of gasoline declined 4.1 million barrels, the
API said, versus a forecast 200,000-barrel decrease, while
supplies of distillate fuels including heating oil and diesel
slid 777,000, nearly in line with the expected 900,000-barrel
drop.
World stocks surged to a five-month high and the U.S.
dollar fell broadly on Tuesday after the Bank of Japan's
surprise move to lower interest rates. Japan's Nikkei average
climbed further on Wednesday. [] []
The dollar on Wednesday strengthened further against a
basket of currencies. <.DXY>
Strikers at France's top oil port blocked more tankers on
Tuesday as their deadlock with management started to hit
gasoline supply and threatened to halt refineries in a few
days. []
The Houston Ship Channel won't reopen until Wednesday
morning to resume crude shipments to four refineries as 19
tankers awaited entry into the top U.S. petrochemical port, the
U.S. Coast Guard said on Tuesday. []
(Editing by Ed Lane)
