* API data shows surprise crude stock build; eyes on EIA
* Russian oil output hits post-Soviet record high in Nov
* Gold hits record high, copper climbs but fails to lift oil
(Updates throughout, previous SINGAPORE)
By Joe Brock
LONDON, Dec 2 (Reuters) - U.S. crude futures fell below $78
a barrel on Wednesday after industry data showed a surprise
build in U.S. crude stocks, raising doubts over demand recovery
in the world's largest energy user.
Data from the American Petroleum Institute, released after
Tuesday's settlement, showed U.S. crude inventories rose 2.9
million barrels last week, dwarfing the forecast in a Reuters
poll for a 400,000 barrel increase. []
Fresh direction will come from the more closely watched U.S.
Energy Information Administration petroleum report at 1530 GMT.
"I think considering how bearish the report was it is not
surprising oil is down," said Carsten Fritsch, oil analyst at
Commerzbank in Frankfurt
"There was nothing bullish in this report."
NYMEX crude for January delivery <CLc1> fell 43 cents to
$78.94 a barrel by 0943 GMT, after settling up $1.09, or 1.4
percent, on Tuesday.
Brent crude <LCOc1> fell 29 cents to $79.06.
Further doubts over potential oil gains were heightened on
Wednesday as prices failed to be spurred on by rallies in other
commodities.
Gold <XAU=> hit a record high as the euro ticked higher
against the U.S. dollar, fuelling investment interest in the
precious metal as an alternative investment. Meanwhile, copper
<MCU3> rose to its strongest level in 14 months.
"It makes plain the underperformance of oil compared to
other commodities like copper and gold," Fritsch said.
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," ANZ's senior commodities analyst, Mark Pervan said.
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.
There were further signs of rising global oil supplies on
Wednesday as Russia's Energy Ministry data showed the country's
output hit a post-Soviet record for the fourth straight month,
retaining its position as the world's top producer ahead of
Saudi Arabia. []
(Additional reporting by Nick Trevethan in Singapore; editing
by James Jukwey)
((joe.brock@thomsonreuters.com; +44207 542 9162; Reuters
Messaging: joe.brock.thomsonreuters.com@reuters.net))
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