OIL-barrel down to 78.50 U.S. currency by advance DLRS

Oil fell 0.2 percent to about $ 78.50 on Tuesday, with firmness in the dollar on concerns about sovereign risk in Europe, and also forecasts for a rise in stocks of crude and gasoline.
The euro fell to its lowest in nine months and a half against the dollar on Tuesday, pressured by worries over debt problems in Greece.

The market was also on the lookout for the weekly inventory data from the American Petroleum Institute (API, by its initials in English) which will later on Tuesday, followed by the U.S. Government's own numbers on Wednesday.
U.S. crude for April delivery fell 15 cents to $ 78.55 a barrel by 1022 GMT, while London Brent crude fell 7 cents to $ 76.82.

The U.S. oil contract for April touched $ 80.62 a barrel on Monday, a record since 13 January, following the progress of raw materials driven by copper. But prices retreated as the dollar gained 0.65 percent against a basket of currencies.

On Tuesday, the dollar rose 0.41 percent extra.

"The dollar is the main factor, and if it continues to rebound, I expect crude fall further," said Clarence Chu, a trader at Hudson Capital Energy Energy in Singapore.
Oil inventories probably rose U.S. 1.3 million barrels last week amid increased imports, a Reuters poll showed while gasoline stocks would have grown 400,000 barrels.

For its part, the oil minister of United Arab Emirates, Mohammed al-Hamli said Tuesday that oil markets remain well supplied.
He added that prices of between 70 and 80 dollars per barrel was acceptable for producers.

OPEC meets on March 17 and ministers are now suggesting no change in current production quotas.

OIL-barrel falls below 80 DLRS, caution inventories

Oil prices fell Tuesday from a peak above 80 dollars per barrel recorded earlier on a weaker dollar, as a cautious review of supply and demand weakened the recovery.

The dollar fell to its lowest in 14 months against a basket of currencies on Tuesday. A weak dollar lowers the dollar-denominated commodities like oil, for those who derive their income in other currencies.

U.S. crude for November delivery touched $ 80.05 a barrel in Asian trade, the highest since Oct. 14 last year, but then fell back to $ 79.35 a barrel toward 1010 GMT.

London Brent crude fell 20 cents to $ 77.57 a barrel.

Oil prices have risen by almost $ 10 since early October fueled by optimism about the strength of the season of corporate earnings announcements as a sign of economic recovery, in addition to the renewed growth of oil demand.

"We see little support for the surge (oil prices), which collects eight days now, and we think at some point OPEC spare capacity of around 6 million barrels, along with the huge inventory offshore, unleash a correction phase, "said an analyst with Energy JCB, David Wech, in a research note.

The secretary general of the Organization of Petroleum Exporting Countries (OPEC) Abdullah al-Badri said Tuesday he doubted that oil prices can continue around $ 80 a barrel, due to high inventories.

The U.S. inventory data disclosed on Tuesday that American Petroleum Institute could accelerate the losses in prices if crude inventories grow, according to some analysts.

A preliminary Reuters poll of analysts projected that the data reflect an accumulation of 2 million barrels in crude stocks last week.