* U.S. crude, gasoline stockpiles unexpectedly rise -EIA
* Weak dollar aids oil, pushes gold to fresh highs
* Tropical depression could form in the Caribbean
(Updates after EIA inventory data, adds quote, graphic)
By Joe Brock
LONDON, Sept 22 (Reuters) - Oil fell below $75 a barrel on
Wednesday, reversing earlier gains after government inventory
data showed a rise in crude and oil product stocks.
Still sluggish oil use in the United States was highlighted
by Energy Information Agency (EIA) data showing a rise in oil
stocks, despite an outage on a pipeline carrying Canadian crude
to the U.S. []
These figures confirmed industry data from the American
Petroleum Institute (API) which painted a similar picture,
leading oil prices lower on Tuesday.
U.S. crude for November <CLc1>, the front-month contract
after October went off the board on Tuesday, fell 57 cents to
$74.40 by 1514 GMT, well off an earlier high of $76.00.
ICE Brent for November <LCOc1> fell 80 cents to $77.62.
The EIA report said U.S. crude stocks rose 970,000 barrels
in the week to Sept. 17, against a forecast for stocks to be
down 1.9 million barrels.
The data also showed gasoline stocks rose unexpectedly and
that distillate stocks also were higher, up slightly more than
forecast.
"When the API data came out yesterday, a lot of people were
sceptical and wanted to wait for the DOE numbers but these
aren't bullish either," said Tom Bentz, broker at BNP Paribas in
New York.
"With the Enbridge outage last week, it is surprising to see
a build in inventories," Bentz added.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on crude and oil product inventories:
http://graphics.thomsonreuters.com/Flash/DOESept22.swf
Graphic on performance of oil and other commodities:
http://link.reuters.com/hun72k)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
WEAK DOLLAR
Oil had been up more than $1 earlier in the session,
supported by the weaker dollar after the U.S. Federal Reserve
raised expectations of more monetary easing. A weaker dollar
means improved oil-purchasing power for some holders of other
currencies. [] []
Confirmation by the Federal Reserve that overnight interest
rates will remain near zero and expectations the U.S. central
bank would print more dollars sent the greenback to a seven-week
low against the euro. []
"The weaker dollar reflects the Fed statement and I expect
more liquidity will be supportive for commodities," said
Christophe Barret, oil analyst at Credit Agricole.
Gold was in sight of $1,300 an ounce, having hit a record
high overnight after the Fed said it was ready if needed to add
more stimulus and that inflation was running below where it
would like it to be.
Weather forecasters closely monitored a tropical wave in the
southeastern Caribbean that is producing showers and
thunderstorms over much of the Windward Islands as it moves
westward.
In a couple of days, it is expected to become a tropical
depression -- one step below tropical storm strength.
[]
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by James Jukwey)
