* Euro zone woes batter euro, weigh on oil, equities
* US Dec refined products expire lower, add to volatility
* Coming up: EIA oil stocks data, 10:30 a.m. EST Wednesday
(Recasts and updates with API oil inventory data)
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 ongoing concerns about about China's economic
growth.
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, but dropped as low
as $83.55 in post-settlement Globex trading.
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 an unoffical
493,803 lots, down from Monday's 539,097 and 20 percent below
the 30-day average according to Reuters data.
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. []
After recent moves to raise banks' mandated reserve
requirements, investors have been wary of further tightening
measures by the No. 2 oil consumer as China tries to cool
inflation and brake energy demand growth.
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 November
consumer confidence at a five-month high 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
Industry group the American Petroleum Institute's weekly
report released late on Tuesday said crude stocks fell 1.1
million barrels in the week to Nov. 26. []
Gasoline stocks rose 1.1 million barrels and distillate
stocks also posted a slight gain, up 224,000 barrels.
U.S. crude oil inventories were expected to have fallen
900,000 barrels last week as imports dipped, a Reuters analyst
survey on Tuesday showed. Gasoline stocks were expected to be
up 400,000 barrels and distillate stockpiles down 1.1 million
barrels. []
Crude futures prices were little changed by the release.
The U.S. Energy Information Administration's inventory
report is due at 10:30 a.m. EST (1530 GMT) on Wednesday.
(Additional reporting by Gene Ramos in New York, Christopher
Johnson and Jonathan Gleave in London and Alejandro Barbajosa
in Singapore)
