RTRS: UPDATE 2-Oil near $80 as French strike enters 7th day
* French refinery strike enters seventh day
* Products support crude oil
* U.S. crude stocks forecast to rise
(Updates throughout, previous SINGAPORE)
By Ikuko Kurahone
LONDON, Feb 23 (Reuters) - Oil broke a five-day rally on
Tuesday, although prices were supported near $80 by ongoing
strikes by French oil workers, which could close over half of
the country's refining capacity.
U.S. crude futures for April CLc1 fell 37 cents to $79.94
a barrel by 0934 GMT. The March contract, which expired on
Monday, hit $80.51 during the day, the highest for a front-month
contract since Jan. 13.
Brent crude LCOc1 was trading 36 cents lower at $78.25.
Strikes at Total's (TOTF.PA) refineries have entered their
seventh day as workers protest against the French company's plan
to shut one of its six refineries permanently because of weak
demand for fuel. Output has stopped at all the refineries.
Workers at Exxon's (XOM.N) two French refineries have voted
for sympathy walk-outs.
The widespread strikes have drawn in President Nicolas
Sarkozy, who met Total Chief Executive Christophe de Margerie on
Tuesday morning. Earlier the government called for motorists to
remain calm. [ID:nWEB1679]
Drivers rushed to pumps while petroleum industry body UFIP
said on Monday France had around seven days of fuel supply.
Analysts said the strikes have raised concern over fuel
supply shortages, which pushed up oil product prices and
supported crude oil futures, although refinery stoppages in
general translate into lower demand for physical crude oil.
"I see the market staying relatively high due to this French
strike concern," Andy Sommer, an energy market analyst with EGL
in Switzerland. "We do not know how quickly fundamentals will
tighten, or how long it will last."
ICE gas oil futures LGOc1, the European benchmark for
diesel and heating fuel, and New York RBOB gasoline futures
RBc1 held steady. Total often exports gasoline to the United
States. NEWOILOIL
Later in the day, market focus will shift to oil data for
the week to Feb. 19 from U.S. industry group the American
Petroleum Institute (API) at 2130 GMT.
Analysts in a Reuters poll expected a 1.9 million barrel
increase in crude inventories for the week in the United States,
the world's largest oil market.
Inventories middle distillates, including heating oil, were
likely to fall due to high heating demand amid the extended cold
in the U.S. Northeast. [ID:nN22201165]
The dollar was broadly weaker but the euro pared gains
agains the U.S. currency after a closely watched German
sentiment survey came below forecasts. [ID:nBAE003734] [FRX/]
(Additional reporting by Alejandro Barbajosa in Singapore;
Editing by Amanda Cooper)
