* U.S. gasoline stocks down, crude up - EIA
* Concerns over Fed move push dollar higher
* POLL-U.S. crude to average over $83 in 2011
* Coming Up: U.S. jobless claims data Thursday
(Updates with settlement prices and market activity, adds
fresh analyst quote)
By Gene Ramos
NEW YORK, Oct 27 (Reuters) - Oil prices slid nearly 1
percent on Wednesday, pressured by a rally in the dollar as
doubts percolated among investors about the size of a much
ballyhooed U.S. economic stimulus move by the Federal Reserve.
U.S. government data showing a surprise drawdown of 4.4
million barrels in gasoline stocks last week, against forecasts
that motor fuel supplies rose, helped limit losses.
Overall, the latest data showing that domestic crude
inventories fell 5 million barrels, much more than forecast,
though less than Tuesday's industry report of a
6.4-million-barrel increase, disappointed investors.
U.S. crude for December delivery <CLc1> settled down 61
cents at $81.94 a barrel, slogging through the day's low of
$80.52. In London, ICE December Brent <LC0c1> ended down 43
cents at $83.23 a barrel.
"Gasoline was firmer on the EIA (inventory) data, and that
helped lift crude ... crude also saw some late short-covering,"
said Tom Bentz, a broker at BNP Paribas Commodity Futures Inc
in New York
Oil prices had fallen 2 percent before the release of the
U.S. Energy Information Administration's inventory report in
midmorning, as the dollar rose on mounting questions about how
far the Federal Reserve will go to provide fresh stimulus to
the flagging U.S. economy.
The negative correlation between the dollar and the price
of oil was near its strongest level in 14 months in the run-up
to the Fed meeting on Nov. 2-3, when it is expected to detail
how much money will be pumped into the U.S. economy.
A stronger dollar can pressure oil prices by making
dollar-denominated oil dearer to users of other currencies and
by pulling investment into other markets from commodities,
which are viewed as riskier bets.
The more expensive greenback also hit a broad array of
commodities. []
WALL STREET DIPS, BUT OIL SEEN HIGHER
U.S. equities tumbled as investors appeared to be lowering
expectations on how aggressively the Fed may move to give the
economy a shot in the arm, helping drag down oil prices.
Speculation that financial markets may have priced in too
much monetary easing by the Fed was stoked further by a Wall
Street Journal report that the central bank's Treasury
bond-buying program was likely to be worth "a few hundred
billion dollars."
Investors had been counting on between $500 billion and $1
trillion in potential government asset-buying to help bolster
the economic recovery.
"I think there's a concern that maybe next week's
quantitative easing or stimulus package from the Fed may not be
as big as the markets have probably been factoring in," said
James Hughes, a market strategist at CMC Markets.
The potential new monetary stimulus has led 33 analysts
polled by Reuters to forecast that oil prices will average more
than $83 a barrel next year.
It was the first time in six months that analysts had
raised their forecast, but some said the revised outlook was
fragile as the amount and delivery method of new U.S. monetary
easing could still surprise to the demand side.
Combined with weak oil demand growth, that could put oil
prices under pressure, the analysts said.
In France, seven out of 12 oil refineries were set to
resume fuel deliveries as walkouts ended at two plants on
Wednesday, further easing a strike movement that had resulted
in shortages at the pump across the country.
However, workers at the key Fos Lavera oil hub, who have
been on strike for a month, will continue their action until a
deal is found with management over port reform.
(Additional reporting by Robert Gibbons in New York, Isabel
Coles and Joe Brock in London; Editing by Walter Bagley)
