* U.S. pending home sales up sharply in April
* Dollar drops to 2009 low versus euro
* U.S. crude stocks seen falling -poll
(Recasts, updates throughout, changes dateline from previous
LONDON)
NEW YORK, June 2 (Reuters) - Oil prices fell on Tuesday as
traders took profits from a rally that sent crude to a
seven-month high.
U.S. crude <CLc1> fell 45 cents to $68.13 a barrel by
12:17 p.m. EDT (1617 GMT) after optimism about an economic
recovery sent prices to the highest level since early November
on Monday.
London Brent crude <LCOc1> fell 26 cents to $67.71.
"I think basically we've been up seven days in a row and
we're seeing a little profit-taking just because of altitude,"
said Phil Flynn of Alaron Trading in Chicago.
Oil jumped 30 percent in May as expectations the worst of
the global economic crisis may be over, lifting equities and
commodities markets.
Crude found some support after a report showed pending
sales of previously owned U.S. homes shot up by 6.7 percent in
April, the biggest monthly gain in 7-1/2 years.
[]
The Dow and the S&P 500 briefly turned negative on Tuesday,
weighed by a sell-off in financial shares following news of
stock offerings by major banks seeking to raise capital,
including JPMorgan <JPM.N>. []
The dollar fell to its lowest level this year against the
euro and a basket of currencies, reversing earlier gains, on
rising risk tolerance fueled by views the global economy is on
the road to recovery. []
OPEC Secretary General Abdullah al-Badri said oil prices
could reach $90 a barrel early next year, adding the producer
group would not increase supply until global inventories had
been drained. []
"The price will go to $80 to $90 maybe at the beginning of
2010," al-Badri told the Reuters Global Energy Summit.
(For other news from the Reuters Global Energy Summit,
click on http://www.reuters.com/summit/GlobalEnergy09?PID=500)
Last week, OPEC decided to keep production targets
unchanged after agreeing a series of deep cuts in 2008 to stem
a steep slide in crude oil prices from record highs near $150 a
barrel struck last July.
Traders were also awaiting crude and product inventory data
to be released by the American Petroleum Institute later
Tuesday and the U.S. Energy Information Administration on
Friday, which will reflect the Memorial Day holiday weekend
that traditionally kicks off the summer driving season.
A Reuters survey of analysts forecast weekly U.S. inventory
data would show a 1.5-million-barrel decline in crude stocks in
the world's top oil consumer for the week to May 29, while
gasoline and distillate inventories were seen rising. []
Cooler sea temperatures and a possible El Nino prompted the
Colorado State University forecast team to reduce its Atlantic
storm season prediction on Tuesday to 11 tropical storms,
including five hurricanes. []
(For a FACTBOX on forecasts for the 2009 Atlantic hurricane
season, click [] )
The 2009 Atlantic hurricane season officially started on
Monday and runs through Nov. 30, and many analysts said the
potential supply impact for this year would likely be softer
because U.S. stockpiles were brimming. []
(Reporting by Matthew Robinson, Gene Ramos and Robert Gibbons
in New York, Ikuko Kao in London and Chu Baizhen in Singapore;
Editing by Christian Wiessner)
