* Euro slips to 1-week low vs dollar, helps pressure oil
* Jobless claims slip less than expected, boosts dollar
* Coming up: June Brent crude contract expiry on Friday
NEW YORK, May 13 (Reuters) - U.S. crude futures fell
sharply on Thursday as high inventory levels, especially at the
NYMEX delivery point in Cushing, Oklahoma, and the slumping
euro helped keep pressure on crude.
Record inventories at the NYMEX benchmark delivery point in
Cushing, Oklahoma, have kept pressure on front-month crude oil
futures and increased the deficit to the next month's contract
<CL-1=R> to well above $4 a barrel.
The Cushing stocks also helped keep the premium of Brent to
NYMEX crude. It widened further on Thursday, to as much as
$6.42, the widest since Feb. 12, 2009, after hitting $5.99 on
Wednesday.
"While much of this week's expanding discount for June WTI
barrels relative to July futures has been influenced by rolling
of long positions by index funds, etc, the fundamental story
behind the front switch expansion ... is still the buildup in
Cushing supplies to record levels," said Jim Ritterbusch,
president at Ritterbusch & Associates.
The U.S. Energy Information Administration's weekly oil
inventory report on Wednesday showed total crude stocks rose
more than expected, though a slip in gasoline stocks and the
approaching U.S. summer driving season have helped keep RBOB
gasoline futures supported.
The number of U.S. workers filing new unemployment benefit
applications fell slightly less than expected last week,
government data showed on Thursday, while the number of people
still drawing benefits unexpectedly rose. []
The euro extended its decline versus the U.S. dollar to hit
a one-week low on concerns about the economic impact of harsh
fiscal tightening in Europe. Data showing U.S. initial jobless
claims fell last week added to gains in the dollar. []
The dollar index <.DXY> also strengthened.
Wall Street fell at the open on the lackluster jobless
claims report. []
PRICES
* On the New York Mercantile Exchange at 10:25 a.m. EDT
(1425 GMT), June crude <CLM0> was down $1.58, or 2.09 percent,
at $74.07 a barrel, trading from $73.62 to $75.79.
* That $73.62 intraday low dropped under the $74.51 low
from May 7 and was the weakest front-month price since $72.66
was struck on Feb. 12.
* In London on the Intercontinental Exchange, June Brent
crude <LCOM0> fell 64 cents, or 0.79 percent, to $80.56 a
barrel, trading from $79.96 to $81.68. The Brent June contract
expires on Friday.
* NYMEX June RBOB <RBM0> fell 0.30 cent, or 0.14 percent,
to $2.2074 a gallon, trading from $2.1898 to $2.2190.
* NYMEX June heating oil <HOM0> fell 0.87 cent, or 0.4
percent to $2.1504 a gallon, trading from $2.1358 to $2.1750.
* The June/June heating oil crack spread <0#CL-HO=R> was at
$16.28 a barrel. The spread ended Wednesday at $15.03. The
June/June RBOB crack spread <0#RB-CL=R> was at $18.62. The
spread ended Wednesday at $17.19.
* The spread between the current front month and the
five-year forward crude contract <CLc61> was at $18.94, based
on the June 2015 contract Wednesday settlement at $93.01. The
spread ended Wednesday at $17.36.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $79.07/$81.33
Technical support/resistance:
NYMEX crude: $74.51/$78.51
NYMEX heating oil: $2.1162/$2.2020
NYMEX RBOB: $2.1622/$2.2586
For a full report on technicals, click on []
MARKET NEWS
* Colonial Pipeline is allocating nominations for gasoline
shipments on its main line north of Collins, Mississippi, as
demand for space exceeds capacity. []
(Reporting by Robert Gibbons; Editing by Walter Bagley)
