* EIA data shows jump in gasoline, distillate stocks
* Coming Up: U.S. weekly initial jobless claims; 1230 GMT
* For a technical view, click: []
(Recasts, changes dateline from SINGAPORE)
By Emma Farge
LONDON, Aug 5 (Reuters) - Oil prices fell for a second day
on Thursday towards $82 a barrel after a hike in product
inventories in top consumer the United States stoked doubts
about the pace of fuel demand recovery.
U.S. stockpiles of gasoline and distillate fuels extended a
series of builds in July, adding to the supply overhang despite
the peak summer travel season which typically boosts demand for
transport fuels like gasoline and jet fuel. []
U.S. crude for September <CLc1> fell 32 cents to $82.15 a
barrel by 1040 GMT. ICE Brent <LCOc1> was down 48 cents at
$81.72 a barrel by the same time.
Energy Information Administration data showed distillate
stocks rose 2.17 million barrels and gasoline inventories jumped
729,000 barrels, offsetting the potentially bullish impact of a
near 3 million-barrel drop in crude stocks.
"The statistics that we got were pretty weak as the drop in
crude was due to the impact of Bonnie and not an increase in
demand," said oil analyst Christophe Barret at Credit Agricole
CIB, referring to the precautionary shutdown of oil production
in the U.S. Gulf due to the tropical storm last month.
"When you look at what happened on distillates and gasoline
it's not very bright with demand near to recession levels," said
Barret, adding demand was likely to weaken further in the third
quarter.
European shares also dipped in early trade on Thursday ahead
of the European Central Bank's rate decision, confirming the
close correlation with equities. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on U.S. weekly oil inventories, see:
http://graphics.thomsonreuters.com/Flash/DOEAug4.swf
For a graphic of oil's returning currency correlation:
http://graphics.thomsonreuters.com/gfx/ABE_20100408121347.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
BREAK ABOVE $80
Oil prices on Monday ended range-bound trade by breaching
the key psychological barrier of $80 a barrel and have since
risen to a three-month high of near $83 a barrel.
Iran President Mahmoud Ahmadinejad was unharmed after a
homemade explosive went off near his motorcade during his visit
to the western city of Hamadan on Wednesday. []
Another supportive factor is the potential for further
supply disruptions in the Gulf of Mexico after the Colorado
State University maintained its forecast for 10 hurricanes, five
of them expected to be major. []
While some say the return of a geopolitical premium in the
oil price is partly responsible for the rally, many analysts
think prices have run ahead of oil market fundamentals.
They expect future direction to mainly be determined by
macroeconomic factors which should give a better indication of
the demand picture in the United States.
U.S. weekly jobless claims are expected at 1230 GMT.
Monthly data showed companies hired more workers in July but
the gains were too slow to cut unemployment and spur the economy
significantly, reports showed on Wednesday. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by James Jukwey)
