REFILE-NYMEX-Crude sinks below $79 after stock build

(Corrects second paragraph to say ... "late on Tuesday", ... not
..."late on Wednesday")

TOKYO, Oct 21 (Reuters) - U.S. crude futures dropped under
$79 a barrel on Wednesday, adding to losses from the previous
day, after an industry report showed that U.S. crude oil
inventories rose more than expected last week.

FUNDAMENTALS

* NYMEX crude for December delivery CLc1 was down 31 cents
at $78.81 a barrel by 0012 GMT, after the American Petroleum
Institute said late on Tuesday crude stocks rose 3.8 million
barrels, far more than the 1.8 million barrel build forecast in a
Reuters poll. [API/S] [EIA/S]

The Energy Information Administration (EIA), a U.S.
government agency, will issue its own report later on Wednesday.

* U.S. crude for November delivery, which expired on Tuesday,
fell 52 cents to settle at $79.09 a barrel as disappointing U.S.
data on housing and inflation weighed on prices, snapping eight
days of gains for crude. [ID:nNSP209223]

* Oil prices will probably stay strong over the coming
months, driven by expectations of growing demand and a relatively
high level of OPEC output discipline, BP's chief economist said
late on Tuesday. [ID:nLK498253]

MARKETS NEWS

* Japan's Nikkei average edged down 0.3 percent on Wednesday
after anaemic U.S. data prompted concerns about the pace of
economic recovery and set off profit-taking on Wall Street.
[.T]

* The dollar bounced back from a 14-month low against a
basket of currencies in volatile trading on Tuesday as
policymakers in Europe and Asia commented on the greenback's
decline and options-related buying kept it from pushing though
key levels. [FRX/]

* The 19-commodity Reuters-Jefferies CRB index .CRB, which
tracks 19 mostly U.S.-traded commodity markets, fell 0.5 percent
on Tuesday, as the dollar's recovery and disappointing U.S. data
triggered profit-taking in several markets. [COM/WRAP]

DATA/EVENTS

* The following data is expected on Wednesday:

- Weekly U.S. Mortgage Market Index (1100 GMT)

- EIA Weekly U.S. Oil Stocks and Output Data (1430 GMT)

- U.S. Federal Reserve Beige Book Release (1800 GMT)

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> Oil falls from 1-yr high over $80, US data weighs [nNSP209223]

PRICES
Oil prices as of 0012 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude DEC9 $78.81 -0.31 -$0.84 -1.05% $71.88
Heat Oil NOV9 203.95 -0.78 -0.49 -0.24% 184.62
RBOB NOV9 197.82 -0.95 +0.05 +0.03% 178.17
Natgas NOV9 $5.168 +0.007 +$0.326 +6.74% $4.605
ICE Contracts
Brent DEC9 $76.95 -0.29 -$0.53 -0.68% $70.11
Gasoil NOV9 NA +$4.50 +0.71% $573.98
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by James Topham; Editing by Joseph Radford)