* Oil pares previous gains; seen rangebound
* API inventories up more than expected; eyes on EIA data
(Updates prices, adds quoted and details. PVS TOKYO(
By Nick Trevethan
SINGAPORE, Dec 2 (Reuters) - U.S. crude futures pared gains
on Wednesday to trade almost half a percent lower after
industry data showed that U.S. crude stocks rose much more than
expected, more than offsetting weakness in the dollar.
The U.S. currency was almost flat and Japan's benchmark
Nikkei index was down just 0.2 percent, after the Dow Jones
average closed at its highest in 14 months on Tuesday, when the
dollar fell against the euro as Dubai debt default fears ebbed.
Data from the American Petroleum Institute, released after
Tuesday's settlement, showed that U.S. crude stocks rose 2.9
million barrels last week, dwarfing the forecast in a Reuters
poll for a 400,000 barrel increase. []
"Oil sits in the cross-winds of a weaker near-term backdrop
and a more favourable longer-term one," ANZ's senior
commodities analyst, Mark Pervan, said.
"A lot now depends on forecast updates of the U.S. winter
season and the resilience of the U.S. equity market. Both
factors have been favourable to date."
NYMEX crude for January delivery <CLc1> fell 22 cents to
$78.157 a barrel by 0203 GMT, after settling up $1.09, or 1.4
percent at $78.37 on Tuesday.
Brent crude <LCOc1> fell 15 cents to $79.20.
Oil has rallied from below $33 last December but has held
in a narrow band of $70 to $82 over the past two months. Some
analysts see little chance prices will push above the range,
given ample supplies and little sign of strengthening demand.
"The rub however, is that more good news is being priced in
than bad news, suggesting prices could disappoint if the focus
swings," Pervan added.
The API data also showed distillate stocks rose 1.1 million
barrels, defying the forecast that supplies fell 300,000
barrels, while gasoline stocks jumped 3.4 million barrels
against the forecast of just a 1.0 million barrel increase.
"The API data showed an increase in stockpiles above
expectations. Gasoline and distillates were also higher. The
market is waiting for the EIA data now which tend to carry more
weight in the market," David Moore, Commonwealth Bank
Commodities strategist in Sydney said.
He expected crude oil to plough a furrow between around $74
and $81.
"Inventories are still high while demand is relatively
subdued, but the downside is limited ... when prices decline it
attracts new buying supported by the view on macro economic
recovery."
Fresh direction will come later when the U.S. Energy
Information Administration issues its petroleum report.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> rose 3.7 percent on Wednesday, while the
Thomson Reuters index of regional shares <.TRXFLDAXPU> rose
half a percent.
(Additional reporting by Osamu Tsukimori in TOKYO)
(Editing by Clarence Fernandez)
((nicholas.trevethan@thomsonreuters.com; +65 6870 3822;
Reuters Messaging:
nicholas.trevethan.reuters.com@reuters.net))
((If you have a query or comment on this story, send an email
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