NYMEX-Crude retreats from high on China stimulus

NEW YORK, Nov 10 (Reuters) - U.S. crude futures were choppy
near midday on Monday, having retreated from an earlier boost
on news of China's stimulus package.

"If you step back, you realize China's stimulus could take
months, or even years, to affect energy markets," said Phil
Flynn, analyst at Alaron Trading. "After the initial boost to
the market, the excitement is wearing off. It's an admission
that China's economy is slowing."

"Once the shock of (China's) surprise wears off, some of
the gains will probably be given back," Mike Fitzpatrick, vice
president of MF Global wrote in a research note.

"Still, the market is acting as we thought it should, even
before the Chinese announcement. Sellers appear to run out of
momentum near $60. With OPEC officials talking up prices again,
that will probably remain the case."

Oil futures also had been lifted by news Saudi Arabia is
cutting supplies to Asia in December, as expected, after OPEC's
decision to cut output, and by more talk by OPEC ministers
about another emergency meeting and more production curbs.

PRICES

* On the New York Mercantile Exchange at 12:05 p.m. EST
(1705 GMT), December crude CLZ8 was up 13 cents, or 0.21
percent, at $61.17 a barrel, trading from $60.43 to $65.56,
just above technical resistance charted at $65.50.

Before crude rallied to settle 27 cents higher, Friday's
intraday $59.97 low marked the first time below $60 a barrel
since crude was at $59.95 on March 22, 2007.

* In London, December Brent LCOZ8 rose 26 cents, or 0.45
percent, to $57.61 a barrel, trading from $56.92 to $61.98.

* NYMEX December RBOB RBZ8 fell 1.12 cents, or 0.83
percent, to $1.3383 a gallon, trading from $1.3176 to $1.4421.

* NYMEX December heating oil HOZ8 was up 0.92 cent, or
0.47 percent, to $1.9876 a gallon, trading $1.9669 to $2.0940.

* The December heating oil crack spread <0#CL-HO=R> was at
$22.31 a barrel, and the RBOB crack spread <0#RB-CL=R> was at
minus $4.91.

* The spread between the current front month and the
five-year forward December crude contract CLc61 showed an
indicated $24.44, based on the asked price of $85.61 for
December 2013 crude. The spread ended at $24.95 on Friday, up
slightly from $24.68 on Thursday.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $65.01/$67.61

Technical support/resistance:

NYMEX crude: $58.00/$65.50

NYMEX heating oil: $1.88/$2.05

NYMEX RBOB: $1.30/$1.46

For a report on market technicals click [ID:nLA545972]

MARKET NEWS

* World equities and commodity markets rose on Monday,
reacting to China's $586 billion stimulus plan. [MKTS/GLOB]

* Saudi Arabia told Asian refiners that it would cut
December supplies 5 percent, term lifters said. [ID:nSP414579]

* Iran's oil minister said OPEC might meet before its
scheduled December meeting, adding that non-OPEC producers
"must" help manage the market. [ID:nDAH045270]

* Ecuador's oil minister said OPEC should hold a special
meeting this month. [ID:nN10452531]

* Oil should be above $70 a barrel to encourage investment
in increased production capacity and avoid creating future
supply crises, Qatar's oil minister said. [ID:nDAH045270]

* U.S. overall heating demand will be about 10 percent
above normal this week, the National Weather Service said. But
heating oil demand was expected to be almost 5 percent below
normal this week. [ID:[nN10327826]

* Tuesday's federal workers holiday will delay U.S. oil
inventory data until Thursday at 11 a.m. (1600 GMT) and natural
gas data until Friday at 10:35 a.m. (1535 GMT).
[ID:nN06323263]
(Reporting by Robert Gibbons; Editing by Walter Bagley)