* Market awaits EIA report on stocks
* Oil under pressure as equities fall ahead of earnings
(Updates prices)
By Chris Baldwin
LONDON, April 8 (Reuters) - Oil fell to around $48 a barrel
on Wednesday after U.S. data showing swollen crude stocks, and
analysts said there was little sign global demand would soon
rise to soak up the excess.
Crude oil storage in the world's biggest energy consumer the
United States rose 6.9 million barrels last week, the American
Petroleum Institute (API) said late on Tuesday, far above
analyst forecasts of a 2.1-million-barrel build. []
U.S. light crude for May delivery <CLc1> fell 91 cents a
barrel to $48.24 by 1350 GMT. Crude for June delivery <CLc2> was
higher at $51, but also down 91 cents from its Tuesday close at
$51.91. The May contract expires on April 21.
London Brent crude <LCOc1> fell 29 cents to $50.93. Brent
for June delivery, which becomes the front month on April 15,
fell 50 cents to $51.90.
"The situation is much more tense in Asian markets. The U.S.
inventories are not telling the whole story," analyst Eugen
Weinberg at Commerzbank said.
Third-biggest energy consumer Japan's crude inventories also
rose, touching their highest in more than a month as the
country's worst recession since World War Two eats into demand
for oil products. []
"If we see EIA data numbers higher this afternoon, I cannot
rule out that we could drop further," Weinberg said.
The Energy Information Administration -- whose data is
generally seen as more comprehensive -- will release its weekly
report at 1430 GMT on Wednesday, and the market will watch for
more signs of rising stocks.
A Reuters poll forecast an average build of 1.9 million
barrels for crude stocks, already at their highest since July
1993. []
"All told, total crude inventories in the U.S. as of Friday,
March 27th ballooned to a record 1.07 billion barrels. That
equates to approximately 118 days of import cover," oil analysts
at the Schork Group wrote in the Schork Report.
"You still can't swing a cat without hitting a barrel of
crude oil in the United States," Schork Group analysts wrote.
CORPORATE LOSSES
Britain's top share index fell 0.6 percent early on
Wednesday, led lower by banks and commodity stocks on concerns
over corporate earnings. []
Heavyweight oil producers BP <BP.L>, Royal Dutch Shell
<RDSa.L>, BG Group <BG.L> and Cairn Energy <CNE.L> were down 0.4
to 1.1 percent.
Aluminium producer Alcoa Inc <AA.N>, the first company to
report its quarterly results after Wall Street closed, showed a
second consecutive quarterly loss as metal prices and the autos
industry slumped. []
Adding further pressure on oil, the U.S. dollar rose as
investors see the greenback as a safer haven at times of market
stress, making U.S. dollar-denominated commodities more
expensive for overseas investors. []
OPEC, which has agreed cuts amounting to 4.2 million barrels
per day (bpd) since September, is resigning itself to lower
prices this year.
OPEC can live with oil prices of $50-$60 for the rest of
2009, a source close its Angolan presidency said on Tuesday, as
many members have lowered their price expectations with the
focus on rebuilding a damaged global economy. []
(Additional reporting by Maryelle Demongeot in Singapore;
editing by James Jukwey and Sue Thomas)
