* Spain debt worries weigh ahead of eurozone summit
* Coming up: U.S. Nov housing starts; 1330 GMT
By Rebekah Kebede
PERTH, Dec 16 (Reuters) - Oil prices dipped on Thursday as
concerns about Spain's sovereign debt rating outweighed data
showing a much larger than expected drop in U.S. crude
inventories.
FUNDAMENTALS
* On the New York Mercantile Exchange, January crude
fell 37 cents to $88.25 a barrel by 0029 GMT.
* Ratings agency Moody's put Spain's debt on review for a
possible downgrade on Wednesday, highlighting concerns over a
funding crunch next year and sending bank shares sliding. The
ratings agency said it did not expect Madrid to have to follow
Greece and Ireland into taking a European Union bailout, but
added that it could not rule out that scenario. []
* U.S. crude oil stockpiles fell 9.85 million barrels last
week, according to the Energy Information Administration, much
more than the drop of 2.5 million barrels expected. Gasoline
stockpiles rose less than expected and distillates rose
against a forecast for a supply drop.
* The premium of Brent crude over NYMEX benchmark West
Texas Intermediate crude rose to the highest level in seven
months, pushed up by a big increase in crude oil stocks stored
at the key NYMEX delivery hub at Cushing, Oklahoma.
[]
* Cold winter temperatures are expected to boost energy
demand for heating in several regions including the U.S.
Northeast, parts of Europe, Japan, and Korea. In Europe,
colder central and eastern areas the next few days, and
variable to cooler western locales late week/weekend with
energy demand for heating above average.
* In Europe, strong North Sea winds on Thursday will
generate very rough seas and poor to dangerous conditions for
oil transport and platform operations in the
region.[]
MARKETS NEWS
* Prospects for a credit downgrade in Spain, combined with
upbeat U.S. economic data, led to a sharp downturn for the
euro versus the U.S. dollar on Wednesday, while Wall Street
shed gains in a late sell-off. []
* Japan's Nikkei was flat on Thursday as optimism after
the dollar hit a near three-month high against the yen the
previous day was offset by worries over euro zone debt and
overheating in the market. []
* The euro found a steadier footing early in Asia on
Thursday but was vulnerable to further declines with European
Union leaders seen unlikely to come up with a common solution
to tackle the region's sovereign debt crisis at a two-day
summit.
(GMT) DATA/EVENTS
0858 EZ Markit mfg PMI Dec
1000 EZ Inflation-f Nov
1330 U.S. Initial Claims Weekly
1330 U.S. International trade mm Q3
1330 U.S. House starts mm: change Nov
1500 U.S. Philly Fed index Dec
1530 U.S EIA natural gas stocks Weekly
2200 U.S. Semi Book/Bill Nov
:: EZ Start of two-day EU leaders summit in Brussels
(Reporting by Rebekah Kebede; Editing by Ed Lane)
