Oil prices fall on huge build in U.S. crude stocks

By Osamu Tsukimori
TOKYO, March 2 (Reuters) - Oil prices dropped on Wednesday
in the wake of industry data that showed a huge build in U.S.
crude stockpiles.
London Brent crude for May delivery LCOc1 was down 8 cents
at $36.73 a barrel by 0117 GMT, after settling up 24 cents on
Tuesday. The contract touched an intraday peak of $37.25 on
Tuesday, the highest since Jan. 5.
NYMEX crude for April delivery CLc1 was down 34 cents, or
around 1 percent, at $34.06 a barrel, after settling up 65 cents
on Tuesday on the back of firm Wall Street. U.S. crude hit a
one-month high on Tuesday.
U.S. crude inventories rose by 9.9 million barrels last
week, data from the American Petroleum Institute showed after
Tuesday's settlement. That was well above a 3.6-million barrel
increase expected by analysts in a Reuters poll. API/S EIA/S
Some traders were bracing for the possibility that official
data from the Energy Information Administration (EIA) due later
in the day would show a large build similar to the industry
numbers, which could cut short the oil market rebound of the
past two weeks.
Despite the losses, crude prices have trended higher in the
last fortnight since hitting 12-year lows under $30 a barrel
between late January and mid-February.
"Sentiment has clearly shifted for commodities in the last
fortnight," ANZ bank said on Wednesday. "Both crude oil and iron
ore prices hit a one-month high overnight. The price action in
oil adds to the case that the bottom in the crude oil market is
now in place."
Crude prices were supported by Russian Energy Minister
Alexander Novak's remarks that oil firms in the country support
a pledge to average production this year at January's levels but
did not support any proposals to cut oil production.

Russian President Vladimir Putin spoke of "more radical"
measures to balance the global oil market, on top of a
production freeze plan jointly pursued by Moscow with Saudi
Arabia, Qatar and Venezuela.
TECHNICALS-U.S. oil eight-year bear cycle over; targets $42.66
this month
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