* U.S. fuel stocks rise, weighing on futures
* Oil fell 9.7 pct in Q2, first quarterly loss since 2008
* Coming up: U.S. initial jobless claims on Thursday
(Recasts, updates with settlement prices, market activity)
By Robert Gibbons
NEW YORK, June 30 (Reuters) - Oil fell for a third straight
day on Wednesday as a rise in U.S. fuel stocks added to anxiety
over the strength of oil demand as the market posted its first
quarterly decline since the fourth quarter of 2008.
U.S. crude for August <CLc1> fell 31 cents, or 0.41
percent, to settle at $75.63 a barrel, seesawing between $74.39
to $76.83. ICE Brent August crude <LCOc1> fell 43 cents to
settle at $75.01.
U.S. oil product contracts led the decline, with the
expiring July gasoline <RBN0> futures falling 1.44 cents, or
0.55 percent, to settle at $2.0606 a gallon and July heating
oil <HON0> slipping 3.96 cents, or 1.96 percent, to settle at
$1.9817 a gallon.
Gasoline stocks unexpectedly rose 537,000 barrels and
distillates inventories gained a much larger than forecast 2.46
million barrels in the week to June 25, the U.S. Energy
Information Administration reported on Wednesday. []
Crude oil stocks, however, fell by 2.01 million barrels,
more than double expectations.
"Even though there is a larger-than-expected draw in crude
stocks, we have a build in gasoline, which went against
forecasts for a draw, and a very big increase in distillates,"
said Mark Waggoner, president, Excel Futures in Bend, Oregon.
Tuesday's American Petroleum Institute report said crude
stocks fell 3.4 million barrels, a smaller decline than the EIA
reported, though both reports showed larger stockpile drops
than the forecast 900,000 barrels. []
Crude stocks at the key Cushing, Oklahoma, delivery point
for benchmark U.S. crude fell for a second consecutive week,
dropping 795,000 barrels, according to the EIA.
The recent slip from record high storage at the Cushing hub
has helped narrow the price spread between the front-month and
near month U.S. crude contracts. The spread narrowed to 53
cents <CL-1=R> on Wednesday from $1.21 on Tuesday.
ALEX TO HIT MEXICO
Hurricane Alex helped limit Wednesday's price fall by
causing oil companies to shut in 26.3 percent of oil output and
14.4 percent of natural gas production in the Gulf of Mexico
despite the fact that it remained on track to make landfall on
the Mexican coast, well to the southwest of the main platforms.
[] []
A stronger euro, and weaker dollar, also helped limit oil
losses, according to trading sources.
The euro strengthened after European banks borrowed less
than expected from the European Central Bank, reducing fears
they have become too dependent on emergency funding.
Down 9.7 percent since the end of March, U.S. crude
finished first quarter 2010 down $8.13, its first quarterly
price decline since fourth quarter 2008 as stressed financial
markets and weak employment limited the pace of recovery.
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For a graphic on performance across commodity markets in
the last quarter, please click:
http://link.reuters.com/hun72k
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U.S. crude prices hit a 19-month high at $87.15 on May 3,
but reverberations from Europe's debt crisis and the tepid pace
of growth in top consumers China and the United States pulled
oil prices back. Prices fell to $64.24 on May 20, the weakest
front-month price since July 2009.
Adding to the economic concerns, data from ADP Employer
Services on Wednesday showed private employers in the United
States added less than a third of the jobs expected in June.
[]
(Additional reporting by Gene Ramos in New York, David
Sheppard and Alex Lawler in London and Alejandro Barbajosa in
Singapore; Editing by David Gregorio)
