* Data could show US crude stocks up for 4th straight week
* Housing, producer price data to offer clues on outlook
* Growth of Hurricane Bill might offer some price support
(Updates with prices, adds CFTC)
By Jennifer Tan
SINGAPORE, Aug 18 (Reuters) - Oil was steady above $67 a
barrel on Tuesday, after falling the previous day to its lowest
level in two weeks, amid persistent worries over the pace of
the global economic rebound and revival in energy demand.
The market got some support from a bounce in equities but
could see more downside after the release of weekly inventory
data later from the American Petroleum Institute (API), and on
Wednesday from the Energy Information Administration (EIA).
Key July housing data and producer prices due later will
also shed light on the health of the U.S. economy.
Further price support could come from the rapid growth of
Hurricane Bill, the first of this year's season, which might
disrupt Gulf of Mexico oil and gas production.
By 0645 GMT, U.S. crude for September delivery <CLc1> was
up 44 cents at $67.19 a barrel. It had settled 76 cents lower
at $66.75 on Monday, off a two-week low of $65.23 earlier.
London Brent crude for October <LCOc1> was up 12 cents at
$70.66.
"The tone is nervous, absolutely. The market is realising
that a lot of the recent gains have been based on very loose
fundamentals, being driven out of equity markets, and that is
vulnerable to a correction," said Mark Pervan, senior commodity
strategist at ANZ in Melbourne.
Oil suffered its sharpest decline in two weeks last Friday
after the Reuters/University of Michigan Survey of Consumers
showed consumer confidence in early August dropped to the
lowest level since March, casting doubts over the pace of
recovery in the world's top energy consumer.
U.S. stocks suffered their worst loss in seven weeks on
Monday as weak data from Japan and a disappointing outlook from
retailer Lowe's Cos <LOW.N> dampened hopes about the economy's
growth. []
The U.S. dollar and the yen both retained broad gains on
Tuesday as uncertainty over the strength of a global economic
recovery saw investors cut exposure to riskier assets and
higher-yielding currencies. []
The release of weekly API data at 2030 GMT later could show
U.S. crude stockpiles rising for the fourth straight week by 1
million barrels, as higher imports offset a slight rise in
refinery activity, according to a Reuters poll of analysts.
Distillate stocks were seen up 400,000 barrels and gasoline
stocks down 1.4 million barrels. []
The U.S. Commerce Dept will unveil July housing starts and
permits at 1230 GMT. Economists polled by Reuters forecast a
rise to a 600,000 annualised rate from 582,000 in June, and a
total of 580,000 building permits compared with 570,000 the
prior month.
The Labor Department will also release the July Producer
Price Index (PPI) at the same time. Economists forecast a 0.3
percent fall in prices compared with a 1.8 percent increase the
prior month.
Hurricane Bill, the first hurricane of the 2009 Atlantic
season, is expected to strengthen to a major category 3 storm
by Wednesday, while the remnants of Tropical Storm Ana
dissipated without threatening the U.S. Gulf oil patch, the
U.S. National Hurricane Center said. []
Energy markets are jittery over Gulf storms because the
region produces a quarter of U.S oil and 15 percent of its
natural gas.
"Certainly, news of hurricane activity will support prices.
We see a trading range of $63-$70 for oil this week," Pervan
added.
Meanwhile, the U.S. Commodity Futures Trading Commission
(CFTC) is using new authority provided by Congress that gives
the agency more oversight over contracts listed on exempt
commercial markets, which plays an important role in setting
the price for a commodity, Chairman Gary Gensler told Reuters
in an interview.
As part of the broader regulatory overhaul promised by the
Obama Administration, the CFTC held a series of hearings to
examine position limits and which traders, if any, should be
allowed to exceed those limits. The new rules on position
limits could be set as early as autumn. []
(Editing by Ben Tan)
