* Oil slides $1.60 on profit-taking after 10 pct surge
* Pressured by dollar gains after Obama victory
* Saudi Arabia, other OPEC members seen cutting output
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By Fayen Wong
PERTH, Nov 5 (Reuters) - Oil fell more than 2 percent to
below $69 a barrel on Wednesday, reversing part of the previous
day's surge after Democrat Barack Obama's victory in the U.S.
Presidential election gave a boost to the dollar.
Obama defeated Republican John McCain to be the first black
elected U.S. President. Markets had rallied sharply on Tuesday,
partly on anticipation of the victory, which some analysts said
should help extend the U.S. dollar's recovery. []
U.S. light crude for December delivery <CLc1> fell $1.46
cents to $69.07 a barrel by 0448 GMT, after falling as much as
$2.08. London Brent crude <LCOc1> fell $1.44 to $65.
"But by and large, this is a favourable longer-term
development for the U.S. economy so with that in mind, this is
basically a good thing," said Jim Ritterbusch, president of
Ritterbusch & Associates, but he added that there was little
immediate material impact to oil markets.
(To view a factbox on both candidates energy positions, click
[])
Analysts said Obama's victory may inject a degree of
optimism that America can again reinvent itself, but the
world's largest economy still faces recessionary forces and
Obama will be under immense pressure to reinvigorate the
economy.
(For an instant view on Obama's victory, click on
[])
The dollar -- which posted its biggest one-day slide
against the euro since that currency's 1999 launch on Tuesday
-- rebounded against major currencies on Wednesday, rising more
than 1 percent against the euro after Obama's victory.[]
Traders' focus later in the day is likely to turn to the
more immediate issue of weekly U.S. oil inventories, with crude
oil stocks expected to have risen by 1.1 million barrels last
week, while distillates stocks were seen rising by 1.4 million
barrels and gasoline stocks falling 800,000 barrels. []
Crude prices have fallen by about half from a record above
$147 a barrel in July as the global credit crisis hit the wider
economy, damping fuel demand in major consumer nations.
OPEC CUTS
Buoyed by Saudi Arabia and other OPEC members had made cuts
in crude exports, oil surged $6.62 or 10.36 percent on Tuesday,
the largest one-day gain since Sept. 22, when it soared nearly
16 percent ahead of contract expiry and weakness in the U.S.
dollar.
The rally was also helped by a tumble in the U.S. dollar as
investors bet that global interest rate cuts and a credit
market thaw would alleviate the global financial crisis. []
Saudi Arabia has reduced exports after the Organization of
the Petroleum Exporting Countries agreed last month to lower
output, according to trade sources, with some estimating the
world's top exporter had cut shipments by around 900,000
barrels per day (bpd) from a peak in August. []
In addition to Saudi Arabia, other OPEC members including
Venezuela, the United Arab Emirates and Qatar were also showing
signs of throttling back output in line with an OPEC decision
last month to cut output by 1.5 million bpd.
(Reporting by Fayen Wong)
