* China surprises markets, lifts banks' reserve requirement
* EIA says U.S. crude, gasoline stocks rise
* Euro hits nine-month low against dollar
(Recasts with U.S. inventory data, updates prices)
By David Sheppard and Alex Lawler
LONDON, Feb 12 (Reuters) - Oil fell more than 2 percent
towards $73 a barrel on Friday after a U.S. government report
showed crude oil and gasoline stockpiles rose more than expected
in the world's top consumer.
Crude stocks rose by 2.4 million barrels last week, the
Energy Information Administration said, more than the 1.5
million barrel increase expected. Gasoline inventories also rose
more than forecast, while distillate supplies fell by less than
expected. []
U.S. crude for March delivery <CLc1> fell $2.00 to $73.28 a
barrel by 1630 GMT, after settling 76 cents higher at $75.28 a
barrel on Thursday. Brent crude for the new front month of April
<LCOc1> fell $1.90 to $72.22.
"The build in crude and gasoline is negative. I think the
smaller draw on distillate is a little negative," said Kyle
Cooper, managing director at IAF Advisors in Houston. "Certainly
the headlines are a little on bearish side. I think the market's
reflecting that."
Oil in New York had traded as low as $72.66 earlier in the
session after a blow to the energy demand outlook by China's
surprise decision to increase banks' reserve requirements for
the second time this year.
Few in the market were expecting the Chinese central bank's
move on Friday, which will raise the requirements from the end
of this month. Analysts said it may tighten lending and slow a
booming economy. [] []
"Markets may view it negatively in the short-term as China
might import less commodities," Barclays Capital analyst Amrita
Sen said.
"But in the longer term we definitely see it as beneficial
for commodity demand. The worst thing that could happen to
commodity markets would be for China's growth to shoot to 15
percent then crash to 5 percent. The policy of tightening keeps
their growth on a far more sustainable path."
Rapid growth and development in China, the world's second
largest energy consumer, has boosted oil prices in recent years.
All growth in oil demand this year is expected to come from
China and other emerging economiess.
The U.S. dollar rose to its strongest level against the euro
since May 2009 on the news, as investors moved away from riskier
assets. A stronger greenback often pressures commodities priced
in dollars as they become more expensive for holders of other
currencies.
Concerns about debt-stricken Greece also weighed on
sentiment across markets, with no concrete bailout plan emerging
from a meeting of European leaders on Thursday.
Greek Prime Minister George Papandreou on Friday blamed
bickering among EU bodies for delaying support for his country.
[]
The EIA data had been delayed until Friday at 1600 GMT from
its usual Wednesday release because of the severe snowstorms
that have swept the U.S. East Coast. []
A report from the American Petroleum Institute (API) on
Tuesday showed U.S. crude inventories jumped by 7.2 million
barrels to 337.6 million last week. []
(Additional reporting by Jennifer Tan in Singapore and Reuters
New York energy desk; editing by Anthony Barker)
