* Euro zone woes lift dollar, weigh on oil, equities
* China equities drop amid fears of curbed growth
* US Dec refined products expire lower, adds to volatility
* Coming up: API oil inventory data, 4:30 p.m. EST Tuesday
(Recasts, updates prices and market activity, new byline and
changes dateline from previous LONDON)
By Robert Gibbons
NEW YORK, Nov 30 (Reuters) - Oil fell on Tuesday as
concerns that Europe's debt crisis will widen battered the euro
and added to worries about Chinese oil demand.
Front-month December U.S. heating oil <HOZ0> and gasoline
<RBZ0> futures slumped as those contracts expired and went off
the board, also weighing on crude. On Monday, cold weather
boosted distillates and tight New York Harbor supplies lifted
gasoline, helping boost crude prices post a 2 percent gain.
U.S. crude oil for January delivery <CLc1> fell $1.62, or
1.89 percent, to settle at $84.11 a barrel, then extended its
losses to $83.55 in post-settlement trade.
But U.S. oil finished November up 3.29 percent from
October, a third consecutive monthly gain and the biggest since
September, when front-month crude jumped 11.2 percent.
Total U.S. crude trading volume on Tuesday was above
470,000 lots with about 1-1/2 hour left for trading, 24 percent
below the 30-day average.
In London, ICE January Brent crude <LCOc1> fell $1.42 to
settle at $85.92 a barrel.
"Crude sold off mainly on the concerns about the euro zone
economy and the Shanghai index slipping didn't help," said
Chris Dillman, analyst at Tradition Energy in Stamford,
Connecticut.
The dollar index <.DXY> against a basket of currencies
reached a more than two-month peak as the euro <EUR=> tumbled
on continuing fears that Ireland's bailout might not help keep
Europe's debt problems contained. []
Converting prices to euros, Brent reached its highest level
for almost seven months on Tuesday, climbing above 67 euros per
barrel.
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Graphic of Brent in euros and the dollar index:
http://link.reuters.com/bef77q
Graphic of the components of the CRB commodity index:
http://graphics.thomsonreuters.com/F/08/CRB291110.gif
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Robert Montefusco at Sucden Financial in London said the
weakness of the euro was putting increased pressure on oil.
"That puts pressure on the fundamentals," Montefusco said.
"Fear of contagion with not only Portugal and Spain, but now
with France and Belgium in focus as well."
Oil and dollar-denominated commodities often move inversely
to the dollar. A stronger dollar typically pressures oil prices
as it boosts the value of greenbacks paid to producers while
making it more expensive for consumers with other currencies.
China's key Shanghai stock index <> closed at a
seven-week low, with a shortfall of cash in the domestic money
market creating a liquidity squeeze. []
The No. 2 oil consumer is trying to brake energy demand
growth and cool inflation.
Factories in Japan and South Korea, Asia's second- and
fourth-largest oil users, cut output in October, in a region
oil producers look to for demand growth. []
U.S. economic data was mixed, with reports showing consumer
confidence at a five-month high in November and Midwest
business activity growing faster than expected helping oil
bounce earlier on Tuesday, even as a report on falling home
prices disappointed. []
U.S. OIL INVENTORIES
U.S. crude oil inventories were expected to have fallen
900,000 barrels last week as imports dipped, a Reuters analyst
survey on Tuesday said. Gasoline stocks were expected to be up,
with distillate stockpiles down. []
The weekly oil inventory report from the American Petroleum
Institutes is due at 4:30 p.m. EST (2130 GMT) on Tuesday,
followed by the U.S. Energy Information Administration's report
on Wednesday.
(Additional reporting by Gene Ramos in New York, Christopher
Johnson and Jonathan Gleave in London and Alejandro Barbajosa
in Singapore; Editing by Alden Bentley)
