NYMEX-Crude extends decline on U.S. crude stocks rise

TOKYO, July 28 (Reuters) - U.S. crude futures extended
declines on Wednesday after falling nearly 2 percent the previous
day, after industry data showed an unexpected rise in U.S. crude
inventories as imports rose.

FUNDAMENTALS

* NYMEX crude for September delivery CLc1 was down 42 cents
at $77.08 a barrel by 0017 GMT, after dropping to as low as
$76.88 earlier.

It settled down $1.48 at $77.50 on Tuesday after U.S.
consumer confidence plunged to its lowest level in five months,
prompting investors to sell off riskier assets including oil and
equities.

Oil touched $79.69 on Tuesday, the highest front-month crude
price since $80.39 struck on May 6.

* After crude futures settled, the American Petroleum
Institute industry group said in a weekly report that U.S. crude
supplies rose 3.1 million barrels last week. [API/S]

The API said gasoline stocks rose by 877,000 barrels and
distillate stocks increased by 407,000 barrels.

Ahead of the API report, an expanded Reuters survey of
analysts on Tuesday yielded a forecast for crude oil to be down
1.6 million barrels, gasoline up 400,000 barrels, and distillates
up 1.8 million barrels. [EIA/S]

* Offshore producers in the U.S. portion of the Gulf of
Mexico had cut regional crude output by 52 percent on Saturday to
brace for Tropical Storm Bonnie.

Only 15 percent of crude production remained shut on Tuesday,
and it was expected to be fully restored by Wednesday, according
to a government estimate. [ID:nEIA001018]

* U.S. weekly retail gasoline demand rose 1.7 percent in the
week ended July 23, MasterCard said Tuesday. It rose 4.6 percent
from the same week last year. [ID:nN27102862]

* Yale University economist Robert Shiller, a well-known
prognosticator in real estate markets, told Reuters Insider on
Tuesday that he's worried the U.S. economy will enter into a
double-dip recession as growth stalls. [ID:nRTV128716]

MARKETS NEWS

* The S&P snapped a three-day winning streak on Tuesday after
mixed earnings reports and a fall in consumer confidence, but
analysts said U.S. stocks were taking a breather and the rally
could pick back up.

* The euro hovered below a key level on Wednesday, running
into profit-taking after hitting an 11-week high against the U.S.
dollar, with attention turning towards the Australian dollar
ahead of crucial inflation data. [USD/]

DATA/EVENTS

* The following data is expected on Wednesday:

- 1100 GMT--US MBA 30-yr mortgage rate/wkly

- 1230 GMT--US Durable Goods/June

- 1430 GMT--US Energy Information Administration oil report

- 1800 GMT--US Beige Book

- NYMEX Aug 2010 natural gas futures contract expiry

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PRICES
Oil prices as of 0017 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude SEP0 $77.08 -0.42 -$1.48 -1.87% $76.07
Heat Oil AUG0 199.59 -0.35 -4.32 -2.11% 200.37
RBOB AUG0 205.59 -0.73 -4.26 -2.02% 205.77
Natgas AUG0 $4.690 +0.015 +$0.063 +1.37% $4.551
ICE Contracts
Brent SEP0 $75.86 -0.27 -$1.37 -1.77% $75.05
Gasoil AUG0 $640.25 -1.25 -$13.75 -2.10% $638.84
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by Osamu Tsukimori; Editing by Chris Gallagher)