* Oil steady, seen rangebound
* API inventories up more than expected; eyes on EIA data
(Updates prices)
By Nick Trevethan
SINGAPORE, Dec 2 (Reuters) - U.S. crude futures were little
changed on Wednesday, trading in a 78 cent range after a shaky
looking dollar and gains in other commodities offset data
showing that U.S. crude stocks rose much more than expected.
The U.S. currency was almost flat while equity markets in
Asia rose 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.
The falling cost of risk also helped lift other commodities
with gold <XAU=> at a record high and copper <MCU3> at its
strongest in 14 months,
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 19 cents to
$78.18 a barrel by 0650 GMT, after settling up $1.09, or 1.4
percent, on Tuesday.
Brent crude <LCOc1> fell 3 cents to $79.32.
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.
(Additional reporting by Osamu Tsukimori in TOKYO; Editing by
Michael Urquhart)
((nicholas.trevethan@thomsonreuters.com; +65 6870 3822;
Reuters Messaging:
nicholas.trevethan.reuters.com@reuters.net))
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