CORRECTED-Oil prices fall on profit taking, surprise build in U.S. crude stocks

(Corrects paragraph three to say U.S. crude rose on Tuesday
$2.04, not $2.06)
By Keith Wallis
SINGAPORE, July 13 (Reuters) - Crude futures fell on
Wednesday as investors took gains after oil prices surged nearly
5 percent in the previous session, partly on the back of a
forecast increase in demand next year.
A surprise build in U.S. crude stocks and a stronger U.S.
dollar which gained on Wednesday against a basket of currencies
.DXY weighed on oil prices.
U.S. crude CLc1 slipped 45 cents to $46.35 a barrel as of
0007 GMT after ending the previous session up $2.04, or 4.6
percent.
Brent futures LCOc1 fell 51 cents to $47.96 a barrel after
settling up $2.22, or 4.8 percent.
Those were the biggest daily gains since April 8 and
followed Monday's session when oil fell to two-month lows.
Credit Suisse (SIX:CSGN) raised its 2016 oil price forecasts on
Wednesday for U.S. crude, West Texas Intermediate, and Brent.
It forecast WTI would average $43.59 per barrel this year
versus $36.91 in its earlier forecast, and $55.00 per barrel for
2017, versus an earlier forecast of $52.88.
Brent is forecast to average $44.53 a barrel this year, up
from an earlier estimate of $37.77, and average $56.25 a barrel
in 2017, up from $54.25 earlier.
"We are on the cusp of U.S. weekly production statistics -
the market is keeping a close eye on that. There is maybe a
little bit of profit taking ahead of the stats," said Ben Le
Brun, market analyst at Sydney's OptionsXpress.
The U.S. Department of Energy's Energy Information
Administration (EIA) will release official weekly inventory data
later on Wednesday.
That would come after oil stocks data from industry group,
the American Petroleum Institute on Tuesday showed U.S. crude
inventories rose by 2.2 million barrels in the week to July 8 to
523.1 million, compared with analysts' expectations for a
decrease of 3 million barrels.
The unexpected increase led oil prices to pare gains in
post-settlement trade.
While the EIA on Tuesday cut its U.S. and world oil demand
growth forecast for this year, it increased its demand growth
estimates for 2017.
That came as the Organization of the Petroleum Exporting
Countries was upbeat on the oil market outlook for 2017 saying
in its monthly report that global demand for its crude would be
higher than its current production.
"The market is running off good vibes from OPEC which
forecast higher oil demand. That was fundamentally the good news
story of the night," Le Brun said.
Oil markets are also eyeing the impact of an international
court ruling on Tuesday that China has no historic title over
the waters of the South China Sea potentially putting it in
conflict with other countries in the region which have rival
claims.
Investors are keeping a watchful eye on China trade balance
data later on Wednesday, Le Brun said.