* US crude inventories likely to fall for third week-poll
* Technicals show oil in narrow range []
* Coming Up: API oil inventory data; 2130 GMT
(Adds details on Ireland, updates prices)
By Florence Tan
SINGAPORE, Nov 23 (Reuters) - Oil fell to near $81 on
Tuesday, extending losses seen in the previous session, as the
dollar gained against the euro on fears that Ireland's debt
crisis may spread in the euro zone.
The euro fell to as low as $1.3548, coming under
renewed pressure as political uncertainty in Ireland and
worries about other heavily-indebted members of the 16-nation
bloc snuffed out initial optimism over a bailout plan for
Dublin.
U.S. crude for January <CLc1> shed 60 cents to $81.14 a
barrel at 0521 GMT, after dropping 24 cents on Monday. Oil hit
a high of $82.10 earlier. ICE Brent <LCOc1> was down 73 cents
to $83.23 a barrel.
According to Reuters market analyst Wang Tao, U.S. oil is
technically neutral, with prices trapped within a narrow range
of $80.50-$82.87 per barrel.
"Further oil market volatility cannot be excluded as Irish
domestic political developments may yet slow the negotiation
of the aid package with the EU/IMF, and that attention will at
some point shift its focus to other euro zone economies,"
JPMorgan analysts said in a note.
"Looking forward over the course of the week, there
appears to be little macroeconomic news to drive sentiment,
apart from the repercussions of the Irish settlement."
Irish Prime Minister Brian Cowen defied mounting pressure
to quit on Monday, saying he would stay in office until
parliament passed an austerity budget needed to secure the
IMF/EU bailout, which could total 80 billion to 90 billion
euros, and then call an early election. []
The dollar index , which measures the greenback
against a basket of currencies, gained 0.15 percent amid the
Irish debt gloom on Tuesday.
"Oil traders had gotten back into the habit of taking
their cues on oil trading from the dollar and from equities,"
Peter Beutel, president of U.S. trading advisory Cameron
Hanover said in a note.
DROP IN CRUDE STOCKS
However, hopes of a drawdown in U.S. crude stocks in the
week to Nov 19, reflecting better demand at the world's top
energy consumer, may support prices.
Data from the United States is expected to show a third
week of decline for crude inventories in the week to Nov. 19
following a surprise heavy drawdown in the previous week, a
Reuters poll showed on Monday.
"Seasonally demand (in the U.S.) should be improving in
this quarter of the year. Inventories are coming off,
especially for distillates," Serene Lim, a Singapore-based oil
analyst at ANZ.
Traders are also watching the impact from a disruption of
Shell's crude production in Nigeria.
Nigerian output of Bonny Light crude has fallen by about
100,000 barrels per day (bpd) to between 210,000 and 220,000
bpd after a damaged pipeline led Shell to declare a force
majeure on exports on Friday. []
(Editing by Himani Sarkar)
