* Oil rises towards $43 after 10 pct fall in 2 sessions
* Bearish builds in U.S. crude and distillates stocks weigh
* OPEC meeting may focus more on compliance than on new
cuts
By Maryelle Demongeot
SINGAPORE, March 12 (Reuters) - Oil rebounded towards $43 a
barrel on Thursday after a 10 percent fall in the past two
sessions on bearish data for the U.S. and China, the world's
two largest oil consumers, and ahead of OPEC's meeting this
weekend.
Adding further gloom, Japan's economy posted its sharpest
contraction since the oil crisis of 1974 in the final three
months of last year, revised government data showed, and
economists saw little signs of an early rebound. []
U.S. light crude for April delivery <CLc1> rose 59 cents to
$42.92 a barrel by 0151 GMT, having settled more than 7 percent
lower on Wednesday at $42.33.
London Brent crude <LCOc1> gained 43 cents to $41.83.
"A two-day $4.50 selloff in nearby crude futures four or
five days ahead of an OPEC meeting is not a bullish sign for
the energy complex," said Jim Ritterbusch, president of
Ritterbusch and Associates in Galena, Illinois.
Weekly stocks data released by the U.S. Energy Information
Administration (EIA) showed a larger-than-expected 700,000
barrel build in crude inventories together with a large 2.1
million barrel rise in distillates stocks.
"Heating oil stocks posted a second counter-seasonal rise.
Diesel stocks are still building, reflecting underlying
weakness in the economy," French bank BNP Paribas said in its
US weekly statistics comment report.
The market downplayed a bullish 3 million barrel draw in
gasoline stocks as demand for the product was off on the week,
even though demand for the past four weeks was at 9.02 million
barrels per day, up 1.6 percent from a year ago.
The data, coming after the EIA revised down its demand
forecast again a day before for the 11th time in 14 monthly
report, compounded the bearish sentiment after Chinese customs
data showed a large 15 percent fall in crude imports in
February.
China crude imports have dropped 13 percent in
January-February, the biggest two-month decline in four years.
[]
The global economic slowdown has sent oil prices off peaks
over $147 a barrel hit in July, prompting the Organization of
the Petroleum Exporting Countries (OPEC) to cut supplies by 4.2
million barrels per day since September.
The group meets on Sunday, with some members calling for
another output cut and others insisting greater compliance with
current agreements is needed.
Saudi Arabia, the biggest and most influential of the
12-member producer group, is among those which believe it is
too soon to agree new output targets, sources have said.
[]
The outcome of the meeting remains uncertain.
"The braver fundamentally-based decision would be no
change, but we believe the decision most likely to maintain
some upwards price momentum would involve further ratcheting up
of the supply-side pressure," Barclays Capital said in its
weekly oil data review.
(Additional reporting by Gene Ramos in New York; Editing by
Clarence Fernandez)
