* Cushing stocks at record high
* Obama says U.S. to reduce oil imports by 1/3 in 10 years
* Gaddafi forces move east in Libya
* U.S. private sector adds jobs in line with expectations
(Update after EIA data)
By Ikuko Kurahone
LONDON, March 30 (Reuters) - Oil fell on Wednesday, weighed
down by swelling crude inventories in the United States, while
President Barack Obama was expected to set an ambitious
long-term goal to cut oil imports.
Crude oil stocks at Cushing in Oklahoma, the delivery point
of U.S. crude, rose to a record high, dragging U.S. futures
prices lower by more than $1 at one point. []
By 1501 GMT, U.S. crude <CLc1> slipped by 71 cents to
$104.08 a barrel while North Sea Brent crude <LCOc1> fell 9
cents to $115.07 a barrel.
Domestic crude stocks rose 2.95 million barrels in the week
to March 25, the report showed, well above expectations for a
1.8 million barrel build.
Crude oil stored at the NYMEX Cushing, Oklahoma, delivery
hub rose 1.69 million barrel to record high of 41.89 million
barrels.
Gasoline inventories fell more than expected, but analysts
attributed a part of the fall to exports.
"Crude stocks rose more than many people were expecting and
while gasoline stocks are drawing due to exports and the switch
from winter to summer grade fuel, demand is not strong," Andy
Lebow, trader with MF Global in New York, said.
"The demand numbers don't look good, they look really soft."
Ahead of the weekly oil data, U.S. crude nearly pared losses
and Brent turned positive as U.S. ADP employment data showed the
private sector added 201,000 jobs in March. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic - US consumer confidence: http://r.reuters.com/nan78r
More on Middle East unrest: [] []
Libya Graphics http://link.reuters.com/neg68r
Interactive graphic http://link.reuters.com/puk87r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
While the high stocks at land-locked Cushing provided some
buffer to U.S. crude from international geo-political risks the
civil unrest in North Africa and the Middle East limited losses
in Brent crude prices.
In Libya, rebels pulled out of the oil town of Ras Lanuf on
Wednesday under heavy bombardment from Muammar Gaddafi's forces,
showing their weakness without Western air strikes to tip the
scales in their favour. []
A conference of 40 governments and international bodies on
Tuesday agreed to press on with a NATO-led aerial bombardment of
Libyan forces until Gaddafi complies with a U.N. resolution to
end violence against civilians. []
AMBITIOUS PLAN
In the long term, U.S. President Obama will outline a
strategy to cut oil imports by a third over 10 years, focusing
on energy security at a time high gasoline prices could stall
U.S. economic recovery.
The White House says this is a deliberate turn toward energy
security by Obama and will be followed by other events to
highlight his strategy. [] But the immediate market
reaction was limited.
"It sounds like a very ambitious target indeed," said
Carsten Fritsch, analyst at Commerzbank.
"It will be difficult to achieve. Perhaps there will be
large energy, fuel saving measures or they would need to allow
more oil drilling, but after the Gulf of Mexico (spill) it could
be difficult."
(Additional reporting by Alejandro Barbajosa in Singapore and
Robert Gibbons in New York; editing by Keiron Henderson)
