* U.S. stocks to show rise in crude, gasoline - Reuters poll
* Dollar index <.DXY> rises 0.6 pct
(Updates prices, detail)
By Christopher Johnson
LONDON, Nov 3 (Reuters) - Oil fell more than $1 per barrel
to below $77 on Tuesday as stock markets slipped in Europe and
Asia and the dollar rose against a basket of currencies.
European shares <> fell around 2 percent to a
one-month low on Tuesday, with banks suffering after poor
results from UBS <UBSN.VX> and as news of a shake-up in the UK
banking sector made investors wary of risky assets. []
The dollar index rose 0.6 percent as the euro <EUR=> hit a
four-week low.
Oil often weakens when the dollar rises, partly because
crude is priced internationally in the U.S. currency. The dollar
is also widely seen as a gauge of risk appetite, rising when
investors seek safe havens and move away from more volatile
assets such as oil.
U.S. crude for December <CLc1> tumbled $1.58 per barrel to a
low of $76.55 after hitting an early high of $78.46 and settling
up $1.13 on Monday. By 1430 GMT, the December contract stood at
$76.99, down $1.14.
London Brent crude futures <LCOc1> dropped $1.00 to $75.55 a
barrel.
"The strength of the dollar is probably the most important
factor driving commodities in general and oil in particular,"
said Commerzbank commodities analyst Eugen Weinberg.
"Equity markets are down in Asia and Europe and there is a
feeling that recent price increases may have been overdone, that
despite the economic recovery, the current oil supply and demand
situation probably does not justify the recent rise in prices."
U.S. crude futures rose to their highest level this year at
$82 per barrel on Oct. 21, raising the prospect of commodity-led
inflation.
OIL DATA
Traders were awaiting news of oil inventories in the United
States, the world's largest energy consumer.
Industry group American Petroleum Institute will issue its
weekly report on U.S. inventories at 2130 GMT, while the U.S.
government Energy Information Administration will issue its
data on Wednesday.
A Reuters poll of analysts forecast weekly U.S. inventory
data for the week to Oct. 30 would show a 1.5 million-barrel
build in crude stockpiles, a 500,000-barrel draw in distillates
and a 300,000-barrel rise in gasoline inventories. []
Oil got a boost on Monday after U.S. manufacturing activity
hit its highest level in 3-1/2 years last month and pending home
sales contracts unexpectedly jumped in September, easing fears
the budding economic recovery of the world's largest oil
consumer would falter. []
A separate report from the U.S. Commerce Department showed
spending on construction projects rose in September.
[]
Energy traders have closely watched economic data and
equities markets this year for signs of a turnaround in the
economic crisis that could bolster flagging oil demand.
The U.S. Federal Reserve starts its two-day meeting later on
Tuesday and while it is expected to keep rates unchanged, there
is speculation that it might drop or alter its pledge to keep
rates low for an "extended period". []
(Editing by Sue Thomas)
