* U.S. gasoline and distillate inventories weigh on prices
* Dollar strength, Wall Street also pressure
* China loan tightening curbs risk appetite
(Recasts, updates throughout, changes dateline from LONDON)
By Rebekah Kebede
NEW YORK, Jan 27 (Reuters) - Oil prices dipped on
Wednesday, pressured by U.S. data showing builds in oil product
inventories last week, weakness on Wall Street and a stronger
dollar.
The higher U.S. gasoline and distillate inventories
overshadowed a surprise draw in crude stockpiles, which some
analysts attributed to temporary import delays.
U.S. oil for March delivery <CLc1> fell 68 cents to $74.03
a barrel by 1:05 p.m. (1805 GMT), after touching an intraday
low of $73.90. Oil prices have fallen from above $83 a barrel
on Jan. 11. In London, ICE Brent crude for March <LCOc1> fell
60 cents to $72.69 a barrel.
"We are moving from a situation of crude oil oversupply to
one of product oversupply. Fuel demand is just not strong
enough to work off these product stocks, even though refineries
are running at relatively low rates," said Brad Samples, an
analyst at Summit Energy in Louisville, Kentucky.
Gasoline stocks rose more than expected in the week to Jan.
22 by 2.0 million barrels to 229.4 million barrels, versus an
expected rise of 1.1 million barrels, the U.S. Energy
Information Administration reported Wednesday morning. []
Distillate stockpiles, which include heating oil and
diesel, unexpectedly rose 400,000 barrels to 157.5 million
barrels, compared with a 1.7 million barrel decline forecast by
analysts.
Crude inventories had a surprise draw of 3.9 million
barrels, which some analysts dismissed, citing weather-related
import delays in the Gulf of Mexico.
"What is more important is product stocks are up, which
indicates an awful demand situation," said Tom Knight, a trader
at Truman Arnold in Texarkana, Texas.
U.S. crude imports fell by 673,000 barrels per day to 7.87
million bpd, the EIA reported.
The U.S. dollar also pressured prices, climbing to a
six-month high against the euro on concerns over Greece's
fiscal health and as investors awaited the U.S. Federal
Reserve's decision on interest rates later Wednesday. []
A stronger dollar makes commodities priced in the U.S.
currency more expensive for those holding other currencies.
The Federal Open Market Committee was to conclude a two-day
meeting at about 2:15 p.m. (1915 GMT) on Wednesday, with
interest rates widely expected to be left near zero and
investors eager to glean the accompanying statement for any
changes in sentiment.
U.S. stocks fell on Wednesday after a report showing that
new home sales dropped unexpectedly in December. []
Concerns that demand for oil in China will slow after the
nation's largest bank said it would slow credit growth also
weighed on oil prices.
The Industrial and Commercial Bank of China said it had
stopped rolling over some loans in order to slow credit growth
after a surge at the start of the year. []
Analysts see the ICBC's surprise loan curbs as prudent
steps and conducive to sustainable growth.
"Commodities in general have been pressured by the Chinese
finally putting some force to try and slow down their economy,"
said Mike Zarembski, senior commodities analyst at
optionsXpress in Chicago.
Lending curbs and steps by the central bank to mop up some
of the cash sloshing around in the banking system have weighed
on global investor sentiment.
In its mid-January report, the International Energy Agency
pegged China's 2009 oil demand growth at 572,000 barrels per
day, a rise of 7.2 percent.
(Additional reporting by Robert Gibbons and Gene Ramos in New
York, Chris Baldwin in London, Alejandro Barbarosa in Singapore
and Aizhu Chen in Beijing; Editing by Walter Bagley)
