* Drops after U.S. inventory data shows crude build
* Losses tempered by drop in gasoline supplies
* Oil companies recover quickly after tropical storm
* White House says punitive measures needed against Iran
(Updates prices with Brent settlement)
NEW YORK, Aug 6 (Reuters) - Oil slipped to a three-month
low on Wednesday as rising U.S. crude inventories heightened
concerns of a demand slowdown in the world's top consumer.
U.S. light crude <CLc1> fell 59 cents to settle at $118.58
a barrel after hitting a low of $117.11, the lowest since early
May and $30 off the record $147.27 a barrel struck on July 11.
London Brent crude <LCOU8> fell 70 cents to $117.00 a barrel.
The drop came after a weekly report from the U.S. Energy
Information Administration showed crude stocks in the world's
biggest energy consumer rose by 1.7 million barrels in the week
to Aug. 1, well above analysts' forecasts for a 300,000-barrel
build. []
Stocks of distillate fuels, including heating oil and
diesel, rose by 2.8 million barrels, also above forecasts,
while gasoline inventories fell by a steep 4.4 million barrels
against forecasts of a 1.2 million barrel drop.
"The EIA data showing big increase in crude stocks are
bearish, but the gasoline numbers showing a much larger than
expected draw is certainly bullish," said Phil Flynn, analyst
for Alaron Trading in Chicago.
U.S. energy stockpiles have been climbing in recent weeks
amid mounting evidence that surging pump prices and an economic
slowdown are hitting fuel consumption.
Adding to weakness, Tropical Storm Edouard, the fifth named
storm of the 2008 Atlantic hurricane season, hit the Texas
coast without causing any major disruptions to U.S. energy
operations. []
Oil companies were returning workers to offshore platforms
in the Gulf of Mexico and resuming normal operations at
refineries along the coast.
"The next support area is $117. If we break through $117 we
are probably not going to be able to create any upward momentum
in the market," said Rob Kurzatkowski, futures analyst at
optionsXpress in Chicago.
Crude's losses were tempered somewhat by news of an
explosion on the Baku-Tbilisi-Ceyhan oil pipeline in eastern
Turkey late on Tuesday that halted oil flows along the key
pipeline. []
Nigerian supply concerns amid ongoing disruptions due to
militant attacks and the threat of disruptions from Iran should
its standoff with the West worsen have also been in focus,
dealers said.
Iran says it is seeking to master nuclear technology only
to generate electricity and has repeatedly refused to halt its
atomic work, prompting the U.N. Security Council to impose
three rounds of penalties on Tehran since 2006.
The U.S. State Department said major powers had agreed on
Wednesday to consider more U.N. sanctions against Iran after
Tehran gave no concrete reply to their demand that it freeze
its nuclear activities. []
(Additional reporting by Matthew Robinson in New York, Seng Li
Peng in Singapore and Barbara Lewis in London, editing by Jim
Marshall)
