* U.S. weekly gasoline, distillate stocks up; crude
fell-API
* Gold stays near record high; supports commodities
* EIA weekly stock data, FOMC meeting decision eyed
By James Topham
SINGAPORE, Nov 4 (Reuters) - Oil inched down towards $79 a
barrel on Wednesday, after rising nearly 2 percent a day ago,
following an industry report showing a rise in fuel inventories
in the United States though crude fell unexpectedly.
Losses were kept in check as gold held near record highs
and traders awaited separate U.S. government oil inventory
data, as well as a Federal Reserve statement on interest rates
and the economy -- all due out later on Wednesday -- before
making further moves.
U.S. crude for December <CLc1> fell 26 cents to $79.35 a
barrel by 0334 GMT, after settling up $1.47 on Tuesday. London
Brent crude <LCOc1> shed 28 cents to $77.83 a barrel.
"Some of today's losses can be contributed to the API data,
but the real focus is on the EIA numbers due out later," said
Tomokazu Amano, an analyst at Mitsubishi Corp Futures &
Securities in Tokyo.
Analysts also said there might be some traders in long
positions booking some profit ahead of the issue of U.S.
stockpile data from the Energy Information Administration
(EIA).
Industry group American Petroleum Institute said late on
Tuesday that U.S. gasoline stocks rose by 501,000 barrels last
week against forecasts for a 300,000-barrel increase, while
distillate supplies increased by 1.8 million barrels versus
predictions for a 1 million-barrel decline. []
The API said commercial crude oil stocks fell 3.3 million
barrels as imports dropped in the week to Oct. 30, versus
expectation for a 1.4 million-barrel rise.
Gold stayed near a record high above $1,080 per ounce hit
the previous day, defying dollar strength, when the
International Monetary Fund's 200-tonne sale of gold to India's
central bank enhanced sentiment toward the metal. []
The bullion rally, along with data showing rising factory
orders and firm technical support, pushed crude futures higher
on Tuesday.
The U.S. dollar steadied on Wednesday, having hit a
one-month high on a basket of currencies a day ago, with
traders saying the greenback was likely to consolidate ahead of
a raft of central bank meetings. []
SG Commodities Research said in a report that front-month
crude had seen downward pressure from the modest recovery in
the U.S. dollar.
The U.S. Federal Reserve ends its two-day meeting on
Wednesday and, while it is expected to keep rates unchanged,
there is speculation it might drop or alter its pledge to keep
rates low for an "extended period", even as signs of a recovery
mount. [].
On a bearish note, the International Energy Agency (IEA)
will "substantially" downgrade its long-term oil demand
forecast in its annual energy outlook next week, the second cut
in a row, the Wall Street Journal said, citing a person
familiar with the report.
While the IEA's outlook is unlikely to affect the
short-term view that the global economy's recovery from
recession is lifting oil use, it is an important measure for
oil companies considering whether to build refineries or drill
new wells. []
(Editing by Clarence Fernandez)
