* Analysts, officials expect high oil price volatility
* U.S. crude, gasoline, distillates stockpiles rose -poll
* Dollar firms, equities slide on euro zone doubts
* Coming Up: U.S. API inventory report; 2030 GMT
(Adds OPEC report, graphic, updates prices)
By Joe Brock
LONDON, May 11 (Reuters) - Oil fell below $76 on Tuesday as
euphoria over the euro zone's $1 trillion rescue package faded,
leaving doubts over the longer-term outlook for Europe's
economies and their future demand for fuel.
The dollar rallied against the euro and a basket of
currencies <.DXY> on Tuesday, and equities slipped as caution
returned across financial markets. []
A stronger dollar makes oil more expensive for some buyers
holding alternative currencies.
U.S. crude for delivery in June <CLc1> fell $1.17 to $75.63
a barrel at 1102 GMT.
ICE Brent for June <LCOc1> crude slipped 88 cents to $79.24.
"The euro rallied and then has come back down as the initial
relief was over," said Stefan Graber, a commodities analyst with
Credit Suisse.
"Whether confidence is fully restored depends on the
uncertainties about the implementation of this programme. I
don't think we are out of the woods just yet."
A more optimistic outlook for world oil demand from the
Organization of the Petroleum Exporting Countries (OPEC) on
Tuesday did little to support oil prices. []
In its monthly report, OPEC raised its 2010 world oil demand
growth forecast but said non-OPEC supplies would rise more than
previously expected this year, while compliance with its own
output targets slipped down to 51 percent.
VOLATILITY
On Monday oil prices rose as much as $3.40, before settling
up $1.69 at $76.80. Graber said intra-day volatility will
probably continue in coming days as the full implications of the
package are gauged.
Spot gold, often seen as a safe-haven, remained near record
highs, highlighting the doubts many investors have over the
rescue plan.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^For a graphic on oil, equities and gold, click here:
http://graphics.thomsonreuters.com/gfx/JBO_20101105091337.jpg
For a commodity performance graphic, click here:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
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China's inflation edged up to an 18-month high in April and
bank lending topped expectations, pressuring oil prices on
concerns that potential monetary tightening measures could
result in lower demand for fuel in the world's second-largest
energy user. [] []
Attention in the oil market is set to turn to weekly U.S.
inventory statistics to be published over the next two days.
U.S. crude inventories likely rose by 1.6 million barrels
last week on higher imports and slightly lower refinery
utilisation, a preliminary Reuters poll of analysts showed on
Monday. []
Supplies of distillates including heating oil and diesel
probably added 1.2 million barrels, while gasoline stocks rose
700,000 barrels, the poll showed.
The industry group American Petroleum Institute will release
its inventory report for the week to May 7 on Tuesday at 2030
GMT and the U.S. Energy Information Administration's report is
scheduled for 1430 GMT, on Wednesday.
(Additional reporting by Alejandro Barbajosa; editing by Keiron
Henderson)
