* U.S. consumer confidence, British GDP down sharply
* U.S. crude inventory data eyed on Tuesday, Wednesday
* Dollar gains, equities fall in bout of risk aversion
(Recasts, updates prices, market activity; changes dateline
from LONDON)
NEW YORK, June 30 (Reuters) - Oil fell more than 2 percent
to below $70 a barrel on Tuesday after a steep drop in U.S.
consumer confidence data in May added to concerns over a
potential economic rebound.
Major stock market indexes also turned lower and the dollar
rose after the Conference Board's consumer confidence index
showed households felt worse about their situation, fueling a
bout of risk aversion. []
Other gloomy economic data showed the British economy
shrank at its fastest pace in more than 50 years in the first
three months of 2009 and has been in recession for a whole
year. []
In addition, jobless rates in No. 3 oil consumer Japan rose
to a new 5-1/2-year high in May and job availability sank to a
record low, further damping hopes for an economic recovery.
[]
U.S. crude <CLc1> traded down $1.79 to $69.70 a barrel by
12:38 p.m. EDT (1638 GMT), after earlier rising to an
eight-month high of $73.38. London Brent <LCOc1> gave up $1.79
to trade at $69.20 a barrel.
The "consumer confidence number really seemed to reverse
momentum," said Phil Flynn, analyst at PFGBest Research in
Chicago.
"It's before July 4th (U.S. holiday) weekend and it got the
market scared everyone is going to stay home and not drive.
When the market gets concerned about the economy, people run
back to the dollar to avoid risk."
The U.S. dollar rose against the euro, weighing on
commodities denominated in the greenback, with the
Reuters-Jeffries CRB index <.CRB> commodity benchmark trading
down 1.68 percent. []
Driven by hopes of a global economic recovery, oil prices
are on track to post a near 50 percent increase in the second
quarter, the highest quarterly percentage gain since 1990.
Earlier, oil prices surged on unusually high Asian trading
volumes, which some traders attributed to big fund players in
the market.
Oil markets were also awaiting U.S. inventory data from the
American Petroleum Institute, due Tuesday afternoon, expected
to show a draw in crude stockpiles and a build in product
inventories as the world's top consumer heads into the July 4
holiday weekend. []
A Reuters poll of analysts ahead of weekly data estimated
U.S. crude stockpiles fell by 1.6 million barrels last week,
while gasoline stocks were seen up 2 million barrels and
distillate stocks up 1.5 million barrels. []
The U.S. Energy Information Administration will release its
weekly inventory report on Wednesday.
(Reporting by Matthew Robinson, Robert Gibbons, and Gene Ramos
in New York; Joe Brock in London; Editing by David Gregorio)
