* U.S. crude, distillates, gasoline stocks fall, API said
* Dollar strength cap gains on oil, commodities
* Hopes for U.S. economic growth on strong home sales
By Judy Hua
SINGAPORE, Dec 23 (Reuters) - Oil eased down towards $74 in
thin pre-holiday trade on Wednesday, as the firm dollar
outweighed bullish data showing a hefty drawdown in U.S. crude
stocks and an unexpected fall in gasoline supply.
Crude inventories in the world's biggest oil consumer fell
3.7 million barrels last week, against analysts' expectations
of a 900,000-barrel drop, the American Petroleum Institute
(API) said on Tuesday. []
U.S. crude for February delivery <CLc1> edged down 9 cents
to $74.32 a barrel by 0332 GMT, after rising 68 cents to settle
at $74.40 a barrel on Tuesday. Prices have risen almost $6
since hitting a more than two-month low of $68.59 a barrel on
Dec. 13.
London Brent crude for February <LCOc1> fell 16 cents to
$73.30.
"The API data (is bullish) and the market anticipates EIA
data tomorrow to show resonably significant drawdown in the
crude stocks as well as in some of the oil products stocks,"
said Ben Westmore, commodities economist at National Australia
Bank.
"That's sort of positive short-term sentiment."
Gasoline inventories fell 1.1 million barrels as imports
also slipped, API data showed, after a Reuters poll forecast a
1.2 million-barrel build. []
Inventories of distillate fuels fell by just 745,000
barrels, against forecasts for a 1.9 million-barrel drop,
despite cold weather in the U.S. Northeast, the biggest heating
oil market in the world. Total U.S. heating oil inventories
fell by 993,000 barrels. []
The U.S. Energy Information Administration's weekly report
is due at 10:30 a.m. EST (1530 GMT) on Wednesday.
The recovery on oil was curbed by the strengthening dollar
which hit a two-month high versus the yen, with buyers
attracted by U.S. yields at four-month highs and the steepest
yield curve on record. The U.S. currency also held firm against
currency basket. []
Oil prices have often retreated this year when the dollar
rises, making crude more costly for holders of other
currencies. A firmer dollar can also signal investors plowing
funds into safe havens and away from assets considered more
risky, including commodities.
Gold edged up on Wednesday as bargain hunters resurfaced
after the price dropped to its weakest in seven weeks the
previous day, but a firmer U.S. dollar was likely to cap gains.
[]
Further optimism about an economic recovery was reflected
by surprisingly strong sales of previously owned U.S. homes,
which boosted U.S. and European shares closed around 14-month
highs on Tuesday.
U.S. existing home sales jumped 7.4 percent in November to
an annual rate of 6.54 million units, the fastest pace since
February 2007. []
"Obviously there is some macro indicator in the United
States that also looks quite supportive as it continues to show
the recovery is in good feel," said Westmore.
As expected, the Organization of the Petroleum Exporting
Countries (OPEC) left output policy unchanged with the implied
target for members' output, excluding Iraq, at 24.84 million
barrels per day (bpd).
But concerns remain about compliance and the organisation's
ability to persuade members to stick to quotas. []
[]
(Editing by Ramthan Hussain)
