* Quarter of U.S. Gulf output shut due to Alex -govt
* Coming Up: EIA U.S. inventory report; 1430 GMT
* For a technical view, click: []
(Adds quarterly performance graphic, U.S. April demand)
By Alejandro Barbajosa
SINGAPORE, June 30 (Reuters) - Oil edged lower on
Wednesday, heading for its first quarterly drop since 2008 as
risk aversion over Europe's debt crisis offset the effect of
rising demand in the United States and China, the world's top
two consumers.
Asian stocks slid and the euro struggled near a two-week
low on Wednesday on concerns over banks' funding conditions in
Europe and the pace of the global recovery. []
Crude pared losses after the United States late on Tuesday
said Hurricane Alex had forced the shutdown of a quarter of
U.S. oil production in the Gulf of Mexico and after an industry
report showed the nation's inventories fell more than expected
last week. [] []
U.S. crude for August <CLc1> tumbled as much as 61 cents to
$75.33 a barrel and was down 12 cents at $75.82 by 0438 GMT.
ICE Brent crude <LCOc1> slid 29 cents to $75.15.
Prices have declined almost 10 percent from the end of
March, the first quarterly drop since the October-December
period in 2008. A stronger dollar this quarter eroded oil
purchasing power for emerging economies. However, in early May
U.S. crude hit a 19-month high above $87.
For a graphic comparing daily percentage changes for crude
and the dollar over the past 10 quarters:
http://graphics.thomsonreuters.com/gfx/CT_20103006120122.jpg
"I am very bearish on Europe," said Clarence Chu, an energy
trader at Hudson Capital Energy in Singapore.
"The market just wants to get higher and then there is bad
news and it comes down again. The premium for Alex has
evaporated, so I wouldn't be surprised if prices come back
down. It could get really close to the $75 support level."
Banks must repay 442 billion euros ($545.5 billion) to the
European Central Bank on Thursday, leaving a potential
liquidity shortfall in the financial system of over 100 billion
euros. []
The S&P 500 tumbled to its lowest level in eight months on
Tuesday in a sell-off triggered by a wave of rising alarm over
the global economic outlook. Risk aversion intensified after a
report showed a slump in U.S. consumer
confidence.[]
Japan's Nikkei slumped more than 2 percent to a seven-month
low on Wednesday. [] []
ALEX AND INVENTORIES
Tropical Storm Alex was upgraded to a hurricane in the Gulf
of Mexico late on Tuesday but was moving north of Mexican oil
rigs and far southwest of U.S. fields, easing concerns about a
supply disruption. []
Precautionary evacuations and closures interrupted 395,878
barrels per day (bpd), or 24.7 percent of U.S. oil output in
the Gulf of Mexico, the U.S. Bureau of Ocean Energy Management,
Regulation and Enforcement said late on Tuesday. []
"They will only shut down for a few days, but obviously
there will be an impact on next week's inventory figures," Chu
said.
"It's the hurricane season, but I don't think there is any
potential threat just yet. Damage to oil rigs could change
fundamentals dramatically."
U.S. crude inventories fell 3.4 million barrels in the week
to June 25, industry group the American Petroleum Institute
said on Tuesday, outstripping analyst expectations of a
900,000-barrel draw in the latest Reuters poll. []
Gasoline stocks fell 908,000 barrels, versus analysts'
expectations of a 500,000-barrel draw, but distillates,
including heating oil and diesel, rose 4 million barrels, above
forecasts for a 800,000-barrel gain.
The U.S. Energy Information Administration will publish
more closely-watched government statistics on inventories and
consumption on Wednesday at 1430 GMT.
China is leading oil demand growth among emerging
economies, while consumption in the United States started to
rebound in the second quarter after 1-
