UPDATE 2-Oil falls 2 pct to below $49 on bearish stocks data

                                
 * Oil falls 2.4 pct to near $49 on swelling stocks, weak
data
                                
 * US crude stocks rose greater-than-forecast 3.3 mln
bbls-API
                                
 * BOJ tankan manufacturing sentiment worst on record
                                
 * US govt data due later to show 2.5 mln bbl stockpile
hike
 (Updates prices, adds details, background)
                                
 By Fayen Wong
                                
 PERTH, April 1 (Reuters) - Oil fell over 2 percent towards
$48 a barrel on Wednesday, paring much of the previous
session's gains, dragged down by a bearish industry report
showing a larger-than-expected rise in U.S. crude stocks and a
slew of weak economic data.
                                
 U.S crude for May delivery <CLc1> fell $1.20 to $48.46 by
0223 GMT, erasing much of Tuesday's 2.6 percent gain that
lifted the contract to $49.66 a barrel.
                                
 London Brent crude <LCOc1> fell $1.03 to $48.20.
                                
 "The bearish API data is probably the main reason for the
sell-off. Investors are probably also seeing last night's rally
as overdone, which is true since the rally came despite all the
gloomy economic data," said Gerard Rigby, an analyst at Fuel
First Consulting in Sydney.
                                
 Crude futures on Tuesday rose in tandem with Wall Street,
which was headed for its best month in six years, despite
gloomy data showing U.S. house prices had plunged at a record
pace of 19 percent in January, while consumer confidence held
just above record lows in March. [ID:nN31416180]
                                
 But analysts said bearish numbers from the American
Petroleum Institute showing crude stocks rose by a
greater-than-expected 3.3 million barrels to 357.8 million
barrels in the week to March 27, were encouraging investors to
take profit. [API/S]
                                
 The API data is seen as foreshadowing a similarly dismal
report by the more widely tracked U.S. Energy Information
Administration, due to be released later in the day, which is
expected to show a 2.5 million barrel increase in oil
stockpiles that have already swelled to their highest level
since 1993. [EIA/S]
                                
 Poor business confidence from Japan, the world's No. 3
energy consumer, also pointed to a bleak near-term demand
outlook for oil.
                                
 Japanese business confidence tumbled at its fastest pace
ever in the first quarter to the worst on record, the Bank of
Japan's tankan corporate survey showed, highlighting the pain
companies are facing as the global economic crisis scythes
through Japan's exports. [ID:nT188568]
                                
 Compounding the gloom was a forecast by Organisation for
Economic Co-operation and Development that world trade was in
free fall and should decline by 13.2 percent in 2009 as the
economic crisis cuts demand across the globe. [ID:nLV939713]
                                
 Oil prices have tumbled nearly $100 from the record high
struck last July as the global economic crisis slashed global
oil demand for the first time in 25 years.
                                
 But recent rally in global stock markets and production
cuts by the Organization of the Petroleum Exporting Countries
has helped lift oil prices by 9.5 percent in the first quarter,
snapping two consecutive quarters of double-digit declines.
                                
 "Investors are generally seeing an uptrend in the markets
so funds that are looking for somewhere to invest their money
are now much quicker to put their money in commodities," Fuel
First's Rigby said.
                                
 "And oil will be a key market for investors since it is
relatively easy to move the market and make some money at a
much quicker pace."
 (Editing by Ben Tan)