* U.S. crude stocks seen building 1.4 mln bbls last
week-poll
* Iraq, Saudis, Iran all signal higher output
* Rebounding dollar, weak global equities add pressure
* Coming up: API report on U.S. crude inventories (2030 GMT)
(Updates with market settlements)
By Barani Krishnan
NEW YORK, May 3 (Reuters) - Oil prices fell for a second day
on Tuesday, retreating further from the year's highs hit last
week, as rising output renewed worries about the global glut of
crude, the U.S. dollar rebounded and equity markets weakened.
Output from the biggest oil producers in the Middle East
jumped last month or could surge in the near term, data showed
this week, ahead of a U.S. government report on Wednesday likely
to cite record high crude stockpiles.
"There are enough supply stories out there to slow or temper
any gains," Energy Aspects analyst Richard Mallinson said,
adding that the only upside came from the possibility of
longer-term U.S. production declines.
Brent crude futures LCOc1 settled down 86 cents, or 1.9
percent, at $44.97 a barrel.
U.S. crude's West Texas Intermediate (WTI) futures CLc1
fell $1.13, or 2.5 percent, at $43.65.
Iraq said its oil shipments from southern fields averaged
3.4 million barrels per day (bpd) in April, up from 3.3 million
bpd in March.
Production from top exporter Saudi Arabia was 10.15 million
bpd in April, but sources said that it could soon return to a
near-record level of 10.5 million bpd.
Iran is also raising output after its emergence from Western
sanctions in January and has nearly doubled exports to almost 2
million bpd since the start of the year.
Brent and WTI both lost about 3 percent each in Monday's
trade as production from the Organization of the Petroleum
Exporting Countries neared all-time peaks and record speculative
buying in global benchmark Brent sparked profit-taking on last
month's over 21 percent rally to 2016 highs at $48.50.
In Tuesday's session, the dollar index .DXY rose for the
first time since April 22, making dollar-denominated oil less
attractive to holders of the euro and other currencies.
Global equities fell, stoked by dismal data on Chinese
factory activity, British manufacturing and euro zone growth.
MKTS/GLOB
"The latest weakness in oil is also likely the result of
higher U.S. crude build expectations and the technical stall
identified for prices," said David Thompson of Washington-based
commodities-specialized broker Powerhouse.
Analysts polled by Reuters expect the U.S. Energy
Information Administration (EIA) to report a 1.4 million barrels
build last week to record high stockpiles already at above 540
million barrels.
The American Petroleum Institute (API), an industry group,
will issue preliminary inventory data at 4:30 p.m. (2030 GMT) on
Tuesday, ahead of the EIA report on Wednesday. EIA/S
On the technical front, Brent could drop further, said
London's City Index analyst Fawad Razaqzada, who sees support at
$44.50, then $42.50 and finally $41 before what could be
regarded "the end of the current bullish trend".