Crude down as equities dip, eyes supply data

NEW YORK (Reuters) - U.S. crude oil futures ended lower on Tuesday as traders geared up for weekly inventory data and under pressure as Wall Street fell after economic data spurred caution about the economic recovery.

Gasoline futures ended higher, as the inventory data were forecast to show that gasoline supplies fell last week and as New York harbor cash market traders reported supply tightness.

U.S. equities fell, dragged by a slide in financial shares and on economic data showing an unexpected large fall in wholesalers inventories. .N

The American Petroleum Institute rolls out its report at 4:30 p.m. EDT (2030 GMT) and the U.S. Energy Information Administration will release its own report on Wednesday at 10:30 a.m. EDT (1430 GMT).

Ahead of those reports, an expanded Reuters poll of analysts forecast a 700,000-barrel increase in crude stocks, a 1.3 million barrel drawdown in gasoline stocks and a 200,000 barrel decline in distillates.

The EIA said it expected global oil consumption to drop by 1.71 million barrels per day to 83.76 million bpd this year, compared with 2008. World consumption would rise 940,000 bpd to 84.70 million bpd in 2010, it added.

For the United States, the EIA cut its 2009 demand forecast compared with 2008 and lowered its forecast for an increase in 2010 demand against 2009.

"In my view, their prior figures already incorporated the idea of a second-half recovery in demand, and their summary talks about a return to year-on-year growth in the fourth quarter. The minor downward adjustment we see in demand looks like it begins from some downward revisions to the historical data," said Tim Evans, analyst at Citi Futures Perspective.

The dollar traded in a tight range as investors awaited a policy statement from the Federal Reserve.

"I think the market will continue to test resistance and support levels in the recent range until further evidence surfaces that addresses the alleged recovery's sustainability," said Mike Fitzpatrick, vice president at MF Global in New York.

PRICES

* On the New York Mercantile Exchange, September crude settled down $1.15, or 1.63 percent, at $69.45 a barrel, trading from $68.71 to $71.25.

* In London, September Brent crude ended down $1.04, or 1.41 percent, at $72.46 a barrel, trading from $71.91 to $74.19.

* NYMEX September RBOB settled 1.48 cents higher, or 0.73 percent, at $2.0422 a gallon, trading from $2.0020 to $2.0475.

* NYMEX September heating oil ended down 1.59 cents, or 0.82 percent, at $1.9117 a gallon, trading from $1.8842 to $1.9464.

* The September/September RBOB crack spread ended at $16.32 rising from $14.55 on Monday. The September/September heating oil crack spread ended at $10.84, up from $10.36 on Monday.

* The spread between the current front month and the five-year forward crude contract ended at $16.86, edging up from $16.75 on Monday. The September 2014 contract settled on Tuesday at $86.31, down $1.04, or 1.19 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $69.88/$67.54

Technical support/resistance:

NYMEX crude: $70.00/$73.38

NYMEX heating oil: $1.8899/$1.9835

NYMEX RBOB: $2.00/$2.1090

MARKET NEWS

* The second tropical depression of the Atlantic hurricane season formed over the far eastern Atlantic Ocean Tuesday and will likely strengthen into the basin's first named storm during the next day or so, the U.S. National Hurricane Center said.

* Rival oil supplies and sluggish demand recovery will shrink demand for OPEC's crude oil in 2010. Its forecast for world oil demand in 2009 and 2010 was flat.

(Reporting by Gene Ramos, Robert Gibbons and Rebekah Kebede in New York, and David Sheppard in London; Editing by Lisa Shumaker)