* Oil falls after China moves to limit bank lending
* U.S. crude and gasoline stocks rise-EIA
* Dollar rises to nine-month high against euro
(Adds details, changes dateline from previous LONDON)
By Joshua Schneyer
NEW YORK, Feb 12 (Reuters) - Oil fell more than 2 percent
on Friday after China unexpectedly lifted bank reserve
requirements in a move that could slow its demand for
commodities imports, and as data showed U.S. oil stocks rose
more than expected last week.
China's central bank said it would boost bank reserve
requirements at the end of the month for the second time this
year. The move could tighten lending and slow China's booming
economy, limiting demand for commodities like oil.
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"China's move to tighten credit is dominating the trade in
crude oil," said John Kilduff, partner at hedge fund Round
Earth Capital in New York.
Oil prices also fell after U.S. government data showed
crude oil and gasoline stockpiles rose more than expected last
week in the top energy consumer, and as the dollar shot to a
nine-month high against the euro.
U.S. crude for March delivery <CLc1> fell $1.33 to $73.95 a
barrel by 12:21 p.m. EST (1721 GMT), snapping a four-day rally.
Prices fell as low as $72.66 during the session.
Brent crude for the new front month of April <LCOc1> fell
$1.37 to $72.75.
U.S. crude stocks rose by 2.4 million barrels last week,
the Energy Information Administration said, exceeding forecasts
for an increase of 1.5 million barrels. Gasoline stocks also
rose more than forecast. []
"You couldn't ask for a more bearish report. It speaks to
the continuing lack of demand in the U.S. market," said Brad
Samples of Summit Energy in Louisville, Kentucky.
The unexpected bank reserves move in China, the world's No.
2 oil consumer, is a sign the Chinese government is vying to
prevent the economy from over-heating, analysts said.
"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."
The U.S. dollar rose to its strongest level against the
euro since May 2009, as China's move and uncertainty
surrounding a bailout plan for debt-stricken Greece pushed
investors away from riskier assets. A stronger greenback often
pressures commodities priced in dollars as they become more
expensive for holders of other currencies. []
Greek Prime Minister George Papandreou on Friday blamed
bickering among EU bodies for delaying support for his country,
after no concrete bailout plan emerged from a meeting of
European leaders on Thursday. []
(Additional reporting by David Sheppard in London, Robert
Gibbons in New York and Jennifer Tan in Singapore; Editing by
David Gregorio)
