NYMEX-Crude extends fall from 2-yr high as dollar firms

                                
 TOKYO, Nov 10 (Reuters) - U.S. crude futures extended
declines on Wednesday after hitting a two-year high the day
before, as a stronger dollar outweighed the impact of sharp
declines in U.S. oil inventories.
                                
 FUNDAMENTALS
                                
 * NYMEX crude for December delivery <CLc1> was down 20 cents
at $86.52 a barrel by 2310 GMT, after settling down 34 cents at
$86.72 a day earlier, falling for the first time in seven days,
pressured by the dollar's rise and Wall Street's falls.
                                
 The contract rose as high as $87.63 on Tuesday, the highest
since $89.82 struck on Oct. 9, 2008.
                                
 * The International Energy Agency said global oil supplies
will near a peak by 2035 and oil prices might exceed $100 a
barrel in 2015 and $200 in 2035. [ID:nLDE6A70SK] [IEA/M]
                                
 * The American Petroleum Institute said after Tuesday's
settlement that U.S. crude stocks fell 7.4 million barrels in the
week to Nov. 5, countering expectations for a 1.4 million barrel
rise in an expanded Reuters poll. [API/S]
                                
 Distillate stocks fell 4 million barrels, compared to analyst
expectations for a 1.9 million barrel draw. Gasoline inventories
dropped 3.4 million barrels. Analysts polled by Reuters had
expected a 800,000 barrel gasoline draw.
                                
 * The U.S. Energy Information Administration raised its 2011
world oil demand forecast by 33,000 barrels per day, to 87.77
million bpd, from its previous monthly forecast, and now sees a
year-on-year rise of 1.44 million bpd.[ID:nN0948272]
                                
 * U.S. oil demand would grow next year by 120,000 bpd after
increasing by 260,000 bpd this year, the EIA said.
                                
 MARKETS NEWS
                                
 * Wall Street fell for a second day on Tuesday as selling
accelerated into the close, led by sharp losses in bank and metal
stocks.
                                
 The Standard & Poor's 500 Index <.SPX> dropped 9.85 points,
or 0.81 percent, to 1,213.40.
                                
 * The U.S. dollar rallied broadly on Tuesday as debt risks in
the euro zone's periphery weighed on the euro and as U.S. bond
yields jumped. [USD/]
                                
 DATA/EVENTS
                                
 * The following data is expected on Wednesday:
                                
 - 0500 GMT-Japan Consumer confidence/Oct
                                
 - 1200 GMT-US Mortgage Market index/wkly
                                
 - 1330 GMT-US Export/Import prices/Oct
                                
 - 1330 GMT-US Jobless claims/wkly
                                
 - 1530 GMT-US Energy Information Administration oil data/wkly
                                
 PRICES
 Oil prices as of 2310 GMT          
 Contract Mnth    Price  Change  Day ago     pct     MA-20*
 NYMEX Contracts
 US Crude DEC0   $86.52   -0.20   -$0.34  -0.39%     $82.89
 Heat Oil DEC0   240.49   -0.18    +0.90  +0.38%     227.63
 RBOB     DEC0   218.48   -0.02    +0.65  +0.30%     211.43
 Natgas   DEC0   $4.212  +0.002  +$0.122  +2.98%     $3.651
 ICE Contracts
 Brent    DEC0   $87.97   -0.13   +$0.35  +0.40%     $84.36
 Gasoil   NOV0  $744.25   +8.50   +$3.25  +0.44%    $715.03
 Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
 * = 20-day moving average for continuation month.
 (Reporting by Osamu Tsukimori; Editing by Chris Gallagher)