* U.S. crude stocks fall unexpectedly, says API
* U.S. crude supply seen up on low runs in EIA weekly data
* Doubts about success of bank rescue plan rattle markets
(Adds Saudi oil minister's comments)
By Fayen Wong
PERTH, Feb 11 (Reuters) - Oil climbed towards $38 a barrel
on Wednesday, paring some of overnight's 5 percent losses,
after the industry group American Petroleum Institute's weekly
inventory data showed crude stockpiles had fallen unexpectedly.
But a downward revision by the U.S. government on its oil
demand forecasts and doubts over the effectiveness of the U.S.
government's bank rescue plan capped oil's gains.
U.S. crude <CLc1> for March delivery <CLc1> rose 38 cents
to $37.93 a barrel by 0225 GMT, after settling down $2.01, or 5
percent, at $37.55 a barrel on Tuesday.
London Brent crude <LCOc1> rose 50 cents to $45.11,
stretching its unusual premium over U.S. oil prices to more
than $7 a barrel, nearing the record above $9 hit last month as
storage tanks in the Cushing delivery point neared their peaks.
"The API data is helping prices to rebound after last
night's sell-off. Oil prices were perhaps a little oversold
amid the panic across the equities and commodities markets,"
said Toby Hassall, chief analyst at Commodities Warrants
Australia.
"The macroeconomic data from the U.S. is not painting a
picture of swift recovery but the API numbers could be an
indication that supply and demand in the spot market is
beginning to get a little more balanced."
U.S. crude oil stockpiles unexpectedly fell 1.996 million
barrels last week despite an increase in import levels and a
decline from refineries, data from the American Petroleum
Institute on Tuesday [], bucking expectations
that
crude stocks would increase by 3.1 million barrels.
Analysts said investors were cautiously optimistic as the
API report comes one day ahead of the U.S. Energy Information
Administration's (EIA) weekly report on petroleum supply and
demand, which is considered to be accurate.
U.S. crude oil inventories rose for the seventh consecutive
time last week, analysts forecast in a Reuters poll on Tuesday,
citing a drop in refinery utilisation and higher imports.
[]
In yet another sign that OPEC would cut production targets
at its next meeting in March, Saudi Arabia's oil minister said
low oil prices were as unjustified and unsustainable as the
record peak above $147 a barrel last summer. []
But expectations that the International Energy Agency will
cut its forecasts for 2009 world energy demand yet again this
week due to a worsening economic outlook [] continued
to weigh on oil markets.
Oil's sharp losses on Tuesday, which dragged it back below
the psychologically important $40 mark, came after the U.S.
government revised its oil demand forecasts lower and on
concerns the American banks bailout plan unveiled by the Obama
administration will do little to revive the ailing economy.
[]
The EIA revised down its 2009 global oil demand forecast by
400,000 barrels per day from the previous outlook, predicting
demand will fall by 1.17 million bpd this year from 2008
levels. []
Analysts said investors would be closely eyeing Chinese
import and export data as well as U.S. international trade
figures to gauge the health of the economy.
(Editing by Ben Tan)
