* U.S. crude stockpiles jump 3.7 million barrels -API
* China sets yuan mid-point stronger than Tuesday close
* Coming Up: EIA U.S. inventory report; 14:30 GMT
* For a technical view, click: []
(Adds analyst comments, data on U.S. driving)
By Alejandro Barbajosa
SINGAPORE, June 23 (Reuters) - Oil prices fell for a second
day on Wednesday after an industry report showed unexpected
gains in U.S. crude and gasoline inventories, while weak U.S.
home sales data drove equities lower and dampened risk
appetite.
Global stock markets fell after a report on Tuesday showing
that sales of existing homes in the U.S. dropped unexpectedly
in May. Japan's Nikkei average fell 1.6 percent on Wednesday as
the positive impact of China's yuan revaluation faded. []
"If the stock market is going down, it is a factor to drive
the crude market lower," said Ken Hasegawa, a commodity
derivatives manager at brokerage Newedge in Japan. "People
continue profit taking after the API stockbuild."
U.S. crude for August delivery <CLc1> slid 49 cents to
$77.36 a barrel by 0326 GMT, after the July contract expired on
Tuesday. Prices are little changed this week after a jump to
almost $79 two days ago following China's weekend decision to
make the yuan exchange rate more flexible.
ICE Brent for August <LCOc1> fell 35 cents to $77.69.
U.S. crude prices have recovered about 20 percent from a
trough below $65 a barrel a month ago, but are still about $10
lower than an early-May 19-month peak above $87.
Crude stockpiles in the U.S. rose 3.7 million barrels last
week, the American Petroleum Institute (API) said on Tuesday,
while gasoline supplies climbed 810,000 barrels. []
U.S. stockpiles of distillates including heating oil and
diesel rose 1.1 million barrels last week, the API said,
broadly in line with analyst forecasts.
Traders are also watching for government statistics on U.S.
oil inventories and demand from the Energy Information
Administration due on Wednesday at 1430 GMT. []
Investors also awaited Wednesday's conclusion of a two-day
U.S. Federal Reserve's Federal Open Market Committee meeting,
with a statement due at 1815 GMT, for signs that low interest
rates will remain intact. [] []
YUAN EFFECT FADES
The oil market showed little reaction to the publication of
the yuan's trading range mid-point on Wednesday, even after the
central bank of China set it slightly stronger than Tuesday's
close. Oil prices posted short-lived gains on Tuesday after the
bank set the mid-point at its strongest since 2005.
"It was more a sentiment-driven reaction," said Stefan
Graber, a commodities analyst with Credit Suisse in Singapore.
"China is importing a lot of oil and a stronger yuan
favours it, but it comes down to whether the economy continues
to grow. The revaluation helps address global imbalances and
allow for more sustainable growth in the long term."
For yuan news and graphics, click
http://r.reuters.com/fuk43m
MasterCard's SpendingPulse report said U.S. weekly retail
gasoline demand rose 0.4 percent last week versus the previous
week. But demand dropped 2.7 percent from a year earlier.
[]
U.S. highway travel jumped 1.2 percent in April from a year
earlier, rising 3.1 billion miles to nearly 256 billion miles,
the U.S. Transportation Department said on Tuesday.
[]
A U.S. judge blocked the Obama administration's six-month
ban on deepwater drilling imposed in the wake of BP Plc's
<BP.L> Gulf of Mexico oil spill, but the White House said it
would appeal the ruling, issued on a challenge by oil firms
involved in offshore drilling. []
(Editing by Ed Lane)
