* Cushing, Ok inventories rise to fresh record - Genscape
* Brent premium over WTI tops $6 first time in 15 months
* U.S. jobless claims fall, fails to dent bearish outlook
* Coming up: June Brent crude expiring on Friday
(Recasts, updates prices, market activity, details)
By Gene Ramos
NEW YORK, May 13 (Reuters) - Oil prices fell on Thursday on
high U.S. inventories and concerns about the economic recovery,
while short-covering in the front month narrowed U.S. crude
spreads from their widest levels in 15 months.
Front-month U.S. crude <CLc1> for June delivery dipped 27
cents to $75.38 a barrel, at 12:50 p.m. EDT (1650 GMT), having
hit $73.62, the lowest since Feb. 12.
June's discount to July U.S. crude<CLN0>, had widened in
early trading due to rising inventories at the Cushing,
Oklahoma delivery point for the New York Mercantile Exchange's
oil futures contract. The spread widened to nearly $5 in early
activity -- its highest level since February 2009. <CL-1=R> --
but then it narrowed as short-covering lifted the front month.
"After that further widening of U.S. July crude's premium
over July, we've seen some short-covering, and that helped pare
some of June's losses," said Tom Knight, trader at Truman
Arnold, in Texarkana, Texas.
London Brent <LCOc1> traded down 91 cents to $80.29 a
barrel, narrowing its premium to U.S. oil by $1.64 to $4.91 a
barrel after topping $6, the highest in 15 months.
Rising global energy demand and hopes Europe can get its
debt crisis under control have supported Brent rise for three
of the last four days. U.S. crude prices have fallen for seven
of the last eight sessions.
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For a graphic on the front-end NYMEX crude curve:
http://link.reuters.com/veh93k
For a graphic on the premium of Brent to U.S. crude:
http://link.reuters.com/weh93k
For a technical look at the Brent to U.S. crude spread:
[]
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CUSHING RISE
Industry data provider Genscape said crude at the Cushing,
Oklahoma, hub rose by 1.2 million barrels to a record 38.96
million barels in the week to May 11, the seventh straight week
of gains. []
The record build has pulled down front month U.S. crude in
recent weeks. Analysts say Cushing's landlocked location means
it tends to reflect supply and demand in the midwestern United
States, while Brent prices more accurately reflect oil's value
to wider markets.
"In general, Brent is acting as a much better benchmark for
global fundamentals at the moment," Barclays Capital analyst
Amrita Sen said.
The latest U.S. economic data failed to quell worries about
the pace of the recovery.
New unemployment benefit claims fell slightly less than
expected but that the number of people still drawing benefits
rose unexpectedly. []
Crude prices were further pressured by a drop in equity
markets due to the lackluster report on jobless claims and
concerns about austerity measures in Europe. [] [] []
U.S. gasoline inventories unexpectedly dropped by 2.8
million barrels last week, the Energy Information
Administration said on Wednesday. Total U.S. crude inventories
were up by 1.9 million barrels, much more than analysts
expected. []
The euro slipped close to its lowest level in 14 months
against the dollar, on worrires that harsh fiscal tightening in
Europe would lead to slower growth. []
That weighed on commodities priced in dollars as investors
placed safe-haven bets on the greenback.
The euro zone debt crisis roiled energy markets last week,
knocking U.S. crude from a 19-month peak of $87.15 on May 3.
(Additional reporting by Robert Gibbons in New York, David
Sheppard in London, Alejandro Barbajosa in Singapore; Editing
by David Gregorio)
