Weak Chinese equities weigh on global markets
* U.S. EIA oil inventory data due Wednesday morning
NEW YORK, Aug 19 (Reuters) - U.S. crude oil futures slipped on
Wednesday in choppy trading as worry over economic recovery hit Chinese
equities, weighed on other equities and lifted the dollar.
"Crude and product futures retreated slightly on moderate overnight
volume, sinking in line with weaker global equity markets," Addison
Armstrong, analyst at Tradition Energy in Stamford, Connecticut, stated in
a research note.
Crude futures rose above $70 in post-settlement trading on Tuesday and
in early trading Wednesday after the American Petroleum Institute's
inventory report showed an unexpected and sharp drop in crude supplies last
week. [API/S]
The API said crude oil stocks in the United States fell by 6.1 million
barrels in the week to Aug. 14. Distillate stocks increased 1.5 million
barrels and gasoline fell 847,000 barrels.
A Reuters survey of analysts yielded a forecast for a 1.3 million
barrel increase in crude stocks, a 600,000 barrel rise in distillates and a
1.1 million barrel drop in gasoline inventories. [EIA/S]
The U.S. Energy Information Administration will release its own report
on Wednesday at 10:30 a.m. EDT (1430 GMT).
PRICES
* On the New York Mercantile Exchange at 9:44 a.m EDT (1344 GMT),
September crude CLU9 was down 17 cents, or 0.25 percent, at $69.02 a
barrel, trading from $68.05 to $70.50.
* The NYMEX September crude contract expires on Thursday.
* The June 30 peak of $73.38 was the highest intraday front-month crude
oil price since crude hit $75.69 on Oct. 21.
* In London, October Brent crude LCOV9 fell 53 cents, or 0.73
percent, to $71.84 a barrel, trading from $71.17 to $73.51.
* NYMEX September RBOB RBU9 fell 2.18 cents, or 1.09 percent, to
$1.9784 a gallon, trading from $1.9623 to $2.0229.
* NYMEX September heating oil HOU9 fell 1.50 cents, or 0.8 percent,
to $1.85 a gallon, trading from $1.8339 to $1.8767.
* The September/September RBOB crack spread <0#RB-CL=R> was at $14.16
after ending at $14.82 on Tuesday. The September/September heating oil
crack spread <0#CL-HO=R> was at $8.77 after ending at $9.14 on Tuesday.
* The spread between the current front month and the five-year forward
crude contract CLc61 was at $17.71, based on the September 2014 contract
Tuesday settlement at $86.73. The spread ended Tuesday at $17.54.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $70.00/$69.07
Technical support/resistance:
NYMEX crude: $67.75/$70.00
NYMEX heating oil: $1.80/$1.9015
NYMEX RBOB: $1.9510/$2.0855
For a report on technicals, click on [ID:nLJ12865]
MARKET NEWS
* European and Asian stocks weakened after a slump in Chinese shares.
[MKTS/GLOB]
* The dollar and yen rose as a sharp slide in Chinese stock prices fed
concern about the economy and increased the safe-haven appeal of the U.S.
and Japanese currencies. [USD/]
* Wall Street opened lower. [.N]
* Explorer Pipeline Co said Wednesday it restarted its Houston, Texas
to Tulsa, Oklahoma pipeline late Tuesday night after a leak was discovered
on Monday. [ID:nN19507802]
* The National Hurricane Center said remnants of downgraded Ana had a
less than 30 percent of becoming a tropical cyclone again during the next
48 hours. [ID:nN19456111]
(Reporting by Robert Gibbons; Editing by John Picinich)
