* 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: []
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, June 8 (Reuters) - Oil rose almost 1 percent to
top $72 on Tuesday as a forecast for another drop in U.S.
inventories helped stabilise a volatile market driven by
concern that Europe's debt crisis would curb energy demand.
U.S. crude stockpiles probably fell by 900,000 barrels last
week as imports likely declined, which would be a second
straight week of lower supplies, a Reuters poll showed on
Monday. []
Finance ministers from the debt-stricken euro zone on
Monday agreed how to deploy a vast anti-contagion programme if
needed by struggling members, sending the euro and Asian stock
markets higher on Tuesday. []
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.
Front-month U.S. crude <CLc1>, down 17 percent from a
19-month high above $87 in early May, on Tuesday rose 62 cents
to $72.06 by 0700 GMT. ICE Brent <LCOc1> gained 46 cents to
$72.58.
"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 the American Petroleum Institute will
publish inventory figures on Tuesday at 2030 GMT, while
government statistics from the U.S. Energy Information
Administration will follow on Wednesday at 1430 GMT.
BATTLING RISK AVERSION
Oil prices would stay in the "ideal realm" of $70 to $80 a
barrel, a level seen fair by consumers and producers and
defended by oil market investors, Saudi Arabia's oil minister
said in remarks published on Monday. []
U.S. crude dipped briefly below $65 on May 20 as the June
contract expired, pressured by record stockpiles at the
Cushing, Oklahoma, pricing point.
The OPEC basket, now close to $74 a barrel, has now
returned to a premium over U.S. crude. For a graphic:
http://graphics.thomsonreuters.com/gfx/CT_20100806135235.jpg
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 to with the
International Monetary Fund.
The dollar weakened by almost 0.3 percent against a basket
of currencies on Tuesday, as the euro bounced back from
four-year lows, while major Eurepan stock futures rose as much
as 0.4 percent.
Fears about a spreading European sovereign debt crisis, a
slowdown in China and a weak U.S. job market have combined to
sap investor willingness to take risks for higher returns,
prompting them to dump global equities, high-yield bonds, the
euro and some commodities. []
"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 Ed Lane)
