(Recasts, adds comment, changes dateline, previous Singapore)
By Ikuko Kao
LONDON, April 24 (Reuters) - Oil fell towards $117 a barrel
on Thursday amid a strengthening U.S. dollar as traders
continued to lock-in profits after its rally to record highs
earlier this week.
In contrast, London's gas oil set an all-time peak because
of concerns a refinery problem in Finland and a strike that
threatens to shut a refinery in Scotland may further tighen fuel
supplies in Europe.
U.S. crude <CLc1> fell 72 to $117.58 a barrel by 0951 GMT,
dropping for the second straight session after it hit a record
high of $119.90 on Tuesday.
London Brent crude <LCOc1>, which also hit a record high of
$116.75 on Tuesday, dipped 32 cents to $116.14.
Brokers said Thursday's gains in the U.S. dollar against the
euro had added to oil's bearishness, a day after an increase in
U.S. crude oil inventories triggered selling by investors.
The euro slid further from this week's record high against
the dollar on Thursday after Germany's Ifo corporate sentiment
index eased, joining with recent soft data to fray the edges of
confidence in the euro area. []
Crude oil stocks surged by 2.4 million barrels in the
world's top energy user last week, double the forecast level,
mainly due to an increase in inventories on the U.S. West Coast.
[]
Meanwhile, London's gas oil futures <LGOc1>, European
benchmark for distillate products such heating fuel and diesel,
struck their all-time peak of $1080.75 a tonne.
"The ICE London gas oil contract is a key leading indicator.
It is still showing strength, much later than normal," said Jan
Stuart, economist with UBS.
Refinery workers at Britain's Grangemouth refinery will
begin a two-day strike on Sunday that will shut the plant and
squeeze fuel supplies in Scotland and northern England.
Talks between the union and the plant's operator, Ineos,
broke down Wednesday over a company proposal to modify the
salary pension plan, a union official said. []
Finnish refiner Neste Oil said its diesel production line
would be closed until the end of May. []
Disruptions of some exports from Nigeria, Africa's largest
exporter, were likely to provide limited support to crude oil
prices.
Royal Dutch Shell <RDSa.L> on Thursday reaffirmed its
outages stood unchanged at 169,000 barrels per day since the
latest spate of attacks to its Nigerian oil facilities.
(Additional reporting by Felicia Loo in Singapore; editing by
Santosh Menon)
(ikuko.kao@reuters.com; +44(0)20 7542 8145; Reuters
Messaging: ikuko.kao.reuters.com@reuters.net))
