NYMEX-Crude falls back after big API stock build

* API: crude stocks up a lot, gasoline supplies edge down

* Consumer confidence falls more than expected in July

* US equities dip on consumer confidence, earnings worry

NEW YORK, July 28 (Reuters) - U.S. crude oil futures fell
back in post-settlement trading on Tuesday after industry data
showed a huge increase in crude inventories last week, contrary
to analysts' forecasts that supplies fell.

Earlier, crude futures ended lower as oil and equities
markets retreated after an industry group reported that
consumer confidence fell more than expected in July.

"The API build of 4.1 million barrels is bearish and NYMEX
crude fell back after release of the data. But we still have to
see whether the DOE will confirm this number tomorrow," said
Gene McGillian, analyst, TFS Energy, Stamford, Connecticut.

The American Petroleum Institute said that domestic crude
stocks rose 1.4 million barrels last week as imports increased.

Gasoline stocks dropped just 47,000 barrels and distillate
stocks rose 116,000 barrels, the API said. [API/S]

U.S. crude oil inventories fell 1.3 million barrels last
week, according to a Reuters poll of analysts on Tuesday.

Distillate stocks rose 1.3 million barrels and gasoline
stocks gained 400,000 barrels, the poll also showed. [EIA/S]

Front-month September crude futures have dropped from
Monday's high of $68.99, the highest intraday since July 2's
$69.74.

On Wall Street, the Dow industrials and S&P 500 slipped on
worries about the U.S. economic recovery following the consumer
confidence report and disappointing quarterly results. But the
Nasdaq rose, lifted by gains in the biotechnology sector. [.N]

The industry group Conference board said its index of
consumer attitudes slid to 46.6 in July from 49.3 in June.
Economists in a Reuters poll had expected a reading of 49.0
[ID:nN28106587]

The U.S. dollar rose from its lowest level of the year as
weak consumer confidence rekindled worries about U.S. economic
recovery. [USD/]

PRICES

* On the New York Mercantile Exchange at 4:50 p.m. EDT
(2050 GMT), September crude CLU9 was down $1.58, or 2.31
percent, at $66.80 a barrel. It earlier settled down $1.15, or
1.68 percent, at $67.23, trading from $66.48 to $68.86.

* In London, September Brent crude LCOU9 was down $1.21,
or 1.71 percent, at $69.60 a barrel. It had settled down 93
cents, or 1.31 percent, at $69.88, trading from $69.07 to
$71.36.

* NYMEX August RBOB RBQ9 was down 3.47 cents, or 1.79
percent, at $1.90 a gallon. It earlier settled down 2.41 cents,
or 1.25 percent, at $1.9106, trading from $1.8960 to $1.9475.

* NYMEX August heating oil HOQ9 was down 3.31 cents, or
1.84 percent, at $1.7635 a gallon. It had settled down 3.19
cents, or 1.78 percent, at $1.7647 a gallon, trading from
$1.7575 to $1.8045.

* August refined products contracts expire on Friday.

* The September/September RBOB crack spread <0#RB-CL=R>
ended at $11.70, edging up from $11.65 on Monday. The
September/September heating oil crack spread <0#CL-HO=R> was at
$7.88, dropping from $8.11 on Monday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $18.70,
widening from $18.08 on Monday. The September 2014 contract
Monday settled $85.93, down 53 cents, or 0.61 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $65.32/$64.29

Technical support/resistance:

NYMEX crude: $68.00/$70.00

NYMEX heating oil: $1.67/$1.80

NYMEX RBOB: $1.90/$1.95

For a full report on technicals, click on [ID:nLS540496]

MARKET NEWS

* Valero Energy Corp (VLO.N) said its Three Rivers, Texas,
refinery would have a turnaround in 2009 and Valero has
postponed a gasoline unit overhaul until 2010 at its Delaware
refinery. [ID:nN28541790]

* Beijing has approved the expansion of the Aoshan
strategic crude oil reserve base in eastern China by adding
18.9 million barrels in storage capacity. [ID:nPEK205489]

* China will trim retail fuel prices by a modest 3 percent
after two big increases last month. [ID:nPEK204930]

* Worldwide diesel and jet fuel volumes stored at sea
worldwide have risen by 10 million barrels since June to about
72 million barrels. [ID:nSP185516]

* Shell Pipeline Co (RDSa.L) said it was working to control
a Eugene Island crude oil pipeline leak in the Gulf of Mexico.
[ID:nN28139243]
(Reporting by Gene Ramos and Robert Gibbons)