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UPDATE 9-Oil falls, U.S. crude settles below $50 as inventories rise

Published 2015-07-22, 03:32 p/m
© Reuters.  UPDATE 9-Oil falls, U.S. crude settles below $50 as inventories rise
DXY
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* U.S. crude inventories rise 2.5 mln barrels - EIA
* Weak U.S., global equities, stronger dollar weigh on oil
* OPEC members say expect price fall to be short-lived

(Rewrites lead, updates prices to settlement)
By Robert Gibbons
NEW YORK, July 22 (Reuters) - Oil prices fell and U.S. crude
settled below $50 a barrel on Wednesday after government data
showed crude inventories in the United States rose last week and
as a stronger dollar and weaker global equities applied
pressure.
U.S. crude oil stocks rose 2.5 million barrels, the Energy
Information Administration (EIA) said in its weekly report,
contrasting with expectations of a 2.3 million-barrel drawdown.
EIA/S
"The crude oil inventory rise was driven by a strong rebound
in crude oil imports, which neared 8 million barrels per day,"
said John Kilduff, partner at Again Capital LLC in New York.

Crude oil imports from Saudi Arabia rose to 1.44 million
barrels per day (bpd), up from 1.32 million the previous week,
according to EIA data.
Equity markets pulled lower by a weak revenue forecast at
Apple Inc and the stronger dollar also pressured oil.
MKTS/GLOB
A stronger greenback .DXY makes dollar-denominated oil
more expensive for consumers using other currencies.
U.S. September crude CLc1 fell $1.67 to settle at $49.19 a
barrel, first settlement below $50 since April. The $49.06
intraday low was a September contract low.
U.S. crude dropped below $50 on Monday for the first time
since April and its 14-day Relative Strength Index is below 28.
A reading below 30 is considered an indication of an oversold
condition by technical traders.
Crude stocks rose 813,000 barrels at the Cushing, Oklahoma,
delivery hub, helping widen the spread between U.S. and Brent
crude CL-LCO1=R to near $7 a barrel.
Brent September crude LCOc1 fell 91 cents to settle at
$56.13.
"The fact that Cushing contributed almost one third of the
increase added to today's downside response," Jim Ritterbusch,
president at Ritterbusch & Associates, said in a note.
Pressure has been rising on the Organization of the
Petroleum Exporting Countries (OPEC) to adjust production in the
face of an expected rise in Iranian exports if sanctions are
loosened. A sharp fall in the Chinese stock market and concerns
about the Greek debt crisis have also added to worries about
demand for petroleum.
OPEC delegates indicated this week they expected the recent
price drop to be short-lived and that they would not defer from
a strategy of keeping output high to maintain market share.
ID:nL5N10139W
U.S. August RBOB gasoline RBc1 initially pared losses on
EIA data showing stockpiles fell, but settled 2.7 percent lower.
Distillate stocks fell less than expected, the EIA said,
limiting losses for ultra-low sulfur diesel (ULSD) HOc1
futures.

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