* Higher reserve ratios for Chinese banks take effect
* U.S. home prices dip in November - index
* U.S. crude, gasoline stockpiles expected to rise
(Updates prices, U.S. oil inventory forecasts)
By Edward McAllister
NEW YORK, Jan 26 (Reuters) - Oil prices fell below $75 a
barrel on Tuesday as a credit clampdown in China and weak U.S.
homes prices data raised concerns about economic recovery and a
potential rebound in energy demand.
China implemented an announced lending clampdown, hitting
investor confidence and sending emerging market stocks down
more than 2 percent. [] []
U.S. home prices slipped in November and were softer than
expected, according to Standard & Poor's/Case-Shiller indexes.
[]
U.S. crude oil <CLc1> fell 60 cents to $74.66 a barrel by
1:31 p.m. EST (1831 GMT), having traded as low as $73.82, the
lowest intraday price since Dec. 22. In London, Brent crude
<LCOc1> fell 50 cents to $73.19 a barrel.
"The home prices report disappointed, but consumer
confidence does indeed appear to have helped ignite a technical
bounce," said Stephen Schork, editor of the Schork Report, an
industry newsletter, in Villanova, Pennsylvania.
Consumer confidence rose for a third straight month to its
highest level since September 2008, according to the Conference
Board. []
Investors have looked to wider economic data over the past
year for signs of economic recovery and a potential rebound in
energy demand.
U.S. stocks edged higher as the better-than-expected
consumer confidence data helped erase losses and pulled crude
off early lows. []
CHINA LENDING CURBS
China's move was a setback for the view that puts the
prospect of rising Asian demand ahead of the oil market's weak
current fundamentals, analysts said. The prospect of Asia-led
future demand growth has been a factor in oil's price rise of
more than 60 percent in the past year.
"The fundamental link to current prices is weak. Hence, oil
prices need at least some general optimism that boom times are
around the corner," said Olivier Jakob, an analyst at
Petromatrix.
"That general optimism depends a lot on China's consumption
... and that will be somewhat challenged by the Chinese
government trying to regulate the formation of bubbles."
After the news that China implemented its planned increase
in required reserves for some banks, Asian and European stocks
fell, gold and copper slipped and the dollar gained. []
[] [] []
RECOVERY JITTERS
Highlighting fears that a global recovery may be
sputtering, South Korea reported weaker-than-expected growth in
the fourth quarter. []
Britain came out of recession in the fourth quarter, but
with a lower growth rate than expected. []
Standard & Poor's cut its rating outlook on Japan.
[]
The U.S. Federal Reserve is not expected to indicate that
it will raise its benchmark interest rate any time soon. The
Federal Open Market Committee, the Fed's policy-setting group,
begins a two-day meeting on Tuesday.
Oil inventories in the United States, the top oil consumer,
were expected to rise further in reports due this week. Crude
stocks probably rose by 1.4 million barrels, a Reuters poll of
analysts showed. []
The survey forecast that gasoline stockpiles climbed 1.1
million barrels and distillates, which include heating oil and
diesel, fell 1.7 million barrels last week.
Industry group American Petroleum Institute issues its
weekly inventory report later on Tuesday. The U.S. government's
Energy Information Administration follows on Wednesday.
(Additional reporting by Robert Gibbons and Gene Ramos in New
York, Alejandro Barbajosa in Singapore; Editing by ; Editing by
Marguerita Choy)
