* 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
(Updates with API inventory data paragraphs 15-18 and stock
market close paragraph 12)
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. []
U.S. stocks ended mixed in volatile trading after the
Federal Reserve statement. []
API SAYS CRUDE STOCKS ROSE
Late on Tuesday, industry group American Petroleum
Institute released its weekly inventory report showing U.S.
crude oil stocks rose of 2.2 million barrels last week, against
a forecast that stockpiles would have slipped. []
November crude prices initially extended losses slightly in
post-settlement trading after the report.
An analyst survey ahead of the API report had yielded a
forecast for crude inventories to be down 1.9 million barrels
last week because of lower imports from Canada due to the
Enbridge pipeline outage and as tankers navigated around stormy
weather. []
The API report also said gasoline stocks rose, against the
expectation they would have fallen, and that distillate
stockpiles rose more than expected.
The U.S. Energy Information Administration will release its
oil inventory 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)
