* Uncertain EU policy rattles investors
* June WTI posts largest intraday move on expiry
* Coming Up: China April demand data; German vote on
support package
* For a technical view, click: []
By Florence Tan
SINGAPORE, May 21 (Reuters) - U.S. oil prices dropped to
near $70 on Friday, after falling the previous day for a
seventh time in eight sessions, on unabated fears that Europe's
debt crisis could hurt global economic growth and slow energy
demand.
Global stocks and commodities sold off on Thursday as
investors exited risky assets and rushed into safe-havens of
the U.S. dollar, strengthening its value. [] []
U.S. crude <CLc1> for July delivery fell 65 cents to $70.15
a barrel by 0303 GMT. On Thursday, trade for the June contract
saw the largest intraday move of around $7 since the end of
2008, tumbling nearly 3 percent on its expiration.
London Brent crude <LCOc1> slid 74 cents to $71.10 a
barrel.
"People are not looking at fundamentals. It's a kind of
panic on the dollar rally," said Clarence Chu, trader at Hudson
Capital.
A stronger dollar makes oil more expensive for holders of
other currencies.
"In general the outlook is negative for Europe," Chu said.
"It's hard for the EU to bail everyone out."
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A clash between France and Germany over a unilateral German
ban on some speculative trades on Wednesday and fears that
Germany may yet force out weaker euro zone members rattled
markets around the world. []
"It's like the U.N., you can't get anything concrete done.
The only thing keeping them on the same page is to prevent a
total collapse of the euro," Chu said.
The market will be watching for the German parliamentary
vote on the country's contribution to the European
Union/International Monetary Fund support package later on
Friday, he said.
Oil came under further pressure after industry data
provider Genscape said on late Thursday that crude stored at
the delivery hub in Cushing, Oklahoma, rose 500,000 barrels in
the week to May 18. []
However, prices may gain some support later on Friday as
China is due to release details of its April oil demand.
Initial data has shown that China, the world's
second-largest oil consumer, posted record rates both in
refinery output and crude imports last month, following seven
months of double-digit growth in apparent oil demand.
[]
(Editing by Clarence Fernandez)
(florence.tan@thomsonreuters.com; + 65 6870 3497; Reuters
messaging: florence.tan.thomsonreuters.com@reuters.net))
