UPDATE 8-Oil retraces early gains; stockpile worry, dollar weigh

(New throughout as market relinquishes early gains)
By Barani Krishnan
NEW YORK, Oct 22 (Reuters) - Oil gave back most of its gains
to trade flat on Thursday as worries about high U.S. crude
inventories offset early support from a gasoline rally and
technical charts calling for higher prices.
A two-week high in the dollar DXY= also weighed on crude
despite a surge in share prices on Wall Street .SPX , which is
normally supportive to oil. USD/ .N
Brent LCOc1 was down one penny at $47.84 a barrel by 1:42
p.m. EDT (1742 GMT). The global crude benchmark finished down 86
cents, or 1.8 percent, on Wednesday, hitting an October low of
$47.50.
U.S. crude's West Texas Intermediate (WTI) oil CLc1
slipped 10 cents to $45.10. It settled down $1.09, or 2.4
percent, in the previous session, falling to a three-week low of
$44.86.
Gasoline RBc1 rose as much as 3 percent in early trade,
pulling crude prices along, after Wednesday's U.S. government
data showed a 1.5 million-barrel decline in gasoline stockpiles
last week, compared with a 858,000-barrel drop forecast in a
Reuters poll. EIA/S
Analysts had also cited technical support for Wednesday's
early gains, as Brent held above $46.
Oil eventually relinquished its gains as focus returned to
last week's big build in crude stockpiles - 8 million barrels -
which was more than double that forecast by analysts in the
Reuters poll.
The fourth weekly build in crude inventories came despite a
pick-up in oil processing works during the autumn maintenance
season for U.S. refineries. USOICR=ECI
"The high crude stock is the one factor weighing most on the
market at the moment," said Dave Thompson at Powerhouse, a
commodities-focused brokerage in Washington.
Chris Jarvis of Maryland-based energy consultancy Caprock
Risk Management concurred. "We have had 22 million barrels of
oil put back in storage over the last four weeks, with the
refinery maintenance season just halfway through. The
fundamentals are just too heavy for the recent bullish
technicals."
Higher stockpiles aside, OPEC's inability to get oil
producers to agree to meaningful measures to boost prices will
also weigh, traders said.
A meeting of oil experts from OPEC and non-member countries
ended on Wednesday without any concrete price support measures
despite discussing the risk low oil prices would have on
investment in new supplies. urn:newsml:reuters.com:*:nL8N12L22V
"There are no signs of any sort of production cuts, which
would have to start from within OPEC," said John Macaluso,
trader in crude oil spreads at Tyche Capital Advisors in Laurel
Hollow, New York.