* OPEC leaves demand forecasts unchanged for 2010
* EIA to issue latest supply/demand data at 1600 GMT
(Updates throughout)
By Emma Farge
LONDON, Aug 11 (Reuters) - Oil prices fell by more than $1
below $70 a barrel on Tuesday, giving up earlier gains as doubts
resurfaced over the pace of economic recovery and any rise in
fuel demand.
U.S. crude <CLc1> was down $1.50 at $69.11 by 1356 GMT.
London Brent crude <LCOc1> fell $1.30 to $72.20.
"Oil was due a small pullback as it has been so sentiment
driven over the past few weeks -- fundamentally there's not a
great deal to hold it up there yet," said Andrey Kryuchenkov,
analyst at VTB Capital in London.
The dollar rose against the euro and U.S. stock index
futures fell to session lows on Tuesday weighed down by
financial shares and by caution ahead of the Federal Reserve's
two-day policy meeting. []
A stronger dollar makes dollar-denominated commodities such
as oil less attractive to non-dollar buyers.
Earlier, news that imports to China had surged by 42 percent
in July to a record 4.62 million barrels per day gave oil prices
a lift. []
But after the open of the U.S. market, financial factors
came back to the fore.
"I think the market will continue to test resistance and
support levels in the recent range until further evidence
surfaces that addresses the alleged recovery's sustainability,"
said Mike Fitzpatrick, vice president at MF Global in New York.
FUNDAMENTALS
OPEC left its forecasts for world oil demand unchanged in
its monthly report with consumption expected to fall 1.65
million bpd in 2009 before rising by 500,000 bpd in 2010.
[]
This was regarded as neutral for the market and analysts are
braced for the U.S. government's Energy Information
Administration (EIA) monthly report at 1600 GMT, which they say
will offer further insights into future supply and demand.
"The focus is going to be definitely on the demand and
people will look for green shoots and upwards revision,"
Petromatrix analyst Olivier Jakob said.
The United States last Friday reported the first fall in the
unemployment rate for 15 months, prompting some oil analysts to
anticipate a faster economic recovery, which could revive oil
demand. []
Analysts will also be watching weekly American Petroleum
Institute inventory data late on Tuesday, followed by weekly
U.S. government data on Wednesday.
The weekly data is expected to show gasoline stocks will
have dropped by 1.5 million barrels in the week ending Aug. 7.
[]
Distillate stocks, including diesel, were also seen lower,
but overall crude stocks were expected to fall as refineries cut
run rates.
For much of this year, the oil market has taken its cue from
rallying equity markets and these have helped to tow prices up
from lows of beneath $33 a barrel last December.
(Additional reporting by Maryelle Demongeot and David
Sheppard in London; Editing by Keiron Henderson and Sue Thomas)
