* U.S. crude stockpiles probably fell 2nd straight week
-poll
* Coming Up: API report on U.S. inventories; 2030 GMT
* For a technical view, click: []
By Alejandro Barbajosa
SINGAPORE, June 8 (Reuters) - Oil edged higher towards $72
on Tuesday as forecasts for a drop in U.S. inventories helped
stabilise a volatile market driven by concerns that Europe's
debt crisis would cut into energy demand.
U.S. crude stockpiles probably fell by 900,000 barrels last
week as imports declined, a Reuters poll showed on Monday, in
their second straight weekly decline. []
Finance ministers from the debt-stricken euro zone sought
to restore financial markets' confidence on Monday by agreeing
how to deploy a vast anti-contagion programme if needed by
struggling members. []
Efforts to contain the crisis came after the Hungarian
government sent mixed signals about the health of its economy,
rattling financial markets and sending crude below $70 on
Monday for the first time in almost two weeks.
Prices of front-month U.S. crude <CLc1>, down 18 percent
from a 19-month high above $87 in early May, on Tuesday gained
11 cents to $71.55 by 0251 GMT, after earlier touching a high
of $71.74. ICE Brent crude <LCOc1> was unchanged at $72.12.
"The heavy sell-off since Friday seems to be finished,"
said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
"The market has been supported by short covering, and some
people are feeling that $70 is quite cheap according to market
fundamentals. The level of U.S. crude inventory is still quite
high, but people are looking at a trend of decreases."
Crude supplies in top consumer the United States fell for
the first time in seven weeks in the week to May 28, following
an almost unbroken stretch of gains going back to late January.
Gasoline stockpiles were forecast up just 100,000 barrels
last week, after four straight weeks of drawdowns, including a
hefty decline of 2.6 million barrels in the week to May 28.
The forecast for distillate stocks called for an average
increase of 600,000 barrels, following a modest build the week
before and two consecutive moderate declines prior to that.
Industry group American Petroleum Institute will publish
inventory figures on Tuesday at 2030 GMT, while government
statistics from the Energy Information Administration will
follow on Wednesday at 1430 GMT.
Hungary's new centre-right rulers, who alarmed markets last
week by suggesting the country could face a Greek-style crisis,
tried to reassure investors on Monday by pledging to stick to
deficit-cutting targets their predecessors agreed with the
International Monetary Fund.
"Sovereign risk probably will have an impact on the
economy, and oil demand in Europe may not be increasing," Emori
said, adding that prices could potentially fall below $60 a
barrel in the next year.
"Economic indicators in the U.S. are not really improving
much," he said.
The U.S. economy added fewer jobs than expected in May, a
report showed on Friday, sending equities and commodities
markets sharply lower.
(Editing by Clarence Fernandez)
