* U.S. front-month crude pressured by expiry-traders
* U.S. Fed concern about weak economy weighs on oil
* U.S. crude inventories likely fell last week-poll
* Coming up: EIA oil data, 10:30 a.m. EDT Wednesday
(Recasts, updates with settlement prices, market activity)
By Robert Gibbons
NEW YORK, Sept 21 (Reuters) - Crude oil prices fell for the
fifth time in six days on Tuesday, wilting amid high oil
inventories and the Federal Reserve's continued concern about
sluggish economic recovery.
Crude futures extended losses right before the close of the
oil's open outcry trading session in New York after the U.S.
Federal Reserve said it would keep interest rates exceptionally
low and that the central bank was prepared to provide
additional accommodation if needed to support recovery.
[]
The October U.S. crude contract expired on Tuesday, helping
keep pressure on the front month and nearby months, industry
sources said.
U.S. crude for October <CLV0> delivery fell $1.34, or 1.79
percent, to settle at $73.52 a barrel as it expired and went
off the board. Trading ranged from $72.81 to $74.60.
U.S. November crude <CLX0> fell $1.22, or 1.6 percent, to
settle at $74.97 a barrel.
ICE Brent for November <LCOc1> fell 90 cents to settle at
$78.42.
The premium for November Brent over the equivalent U.S.
benchmark West Texas Intermediate contract rose to $3.45, based
on settlement prices on Tuesday. The premium shrank below $2
when a leak closed the biggest Canada-to-U.S. crude pipeline
but widened when it became apparent flows would resume last
week. (Graphic of Brent-U.S. crude spreads:
http://link.reuters.com/buc74p)
"There was pressure on the (U.S.) October contract into its
expiry as people realized that we have a glut of supply. That
pressed the market down," said Phil Flynn, analyst at PFGBest
Research in Chicago.
"The November contract was more affected by the Fed
statement today, which didn't inspire any confidence. The
economy is still weak and that doesn't bode well for the energy
market. The outlook isn't that great."
Oil futures failed to garner any support from a weak
dollar, which can lift dollar-denominated crude oil prices
because it makes the commodity less expensive in countries
using currencies other than the greenback.
The euro rallied more than 1 percent against the dollar on
Tuesday, rising to a six-week high after the Federal Reserve
statement. []
CHINESE DATA
Chinese figures offered some support for prices on Tuesday.
China's apparent oil demand rose 8.2 percent in August over a
year earlier, rebounding from July, Reuters calculations from
official data showed. []
But U.S. oil inventories remain high, with crude oil,
distillate and gasoline stock levels all well above year-ago
levels in the government's report for the week to Sept. 10.
Crude inventories probably fell last week because of lower
imports from Canada due to the Enbridge pipeline outage and as
tankers navigated around stormy weather, according to an
expanded Reuters survey of analysts on Tuesday. []
Industry group the American Petroleum Institute will
publish U.S. oil inventory data for the week to Sept. 17 at
4:30 p.m. EDT (2030 GMT) on Tuesday. The U.S. Energy
Information Administration will release its data on Wednesday
at 10:30 a.m. EDT (1430 GMT).
(Additional reporting by Selam Gebrekidan in New York,
Christopher Johnson in London and Alejandro Barbajosa in
Singapore; Editing by Lisa Shumaker)
