NYMEX-Crude down on dollar strength, demand worry

* Dollar strengthens broadly after recent battering

* Global equities slip, pausing after big run up

NEW YORK, Sept 21 (Reuters) - U.S. crude oil futures fell
below the $70 a barrel level on Monday as the dollar
strengthened, global equities slipped and demand worries
persisted despite signs of economic recovery.

"Global oil demand is only slowly picking up and as of
right now not at a fast enough pace to move overstocked
inventories into a destocking pattern that will push
inventories down to more normal levels," Dominick Chirichella,
senior partner, at the Energy Management Institute in Point
Pleasant, New Jersey, said in a note.

The dollar rose broadly, hitting near a two-week high
against the yen, as traders trimmed short positions in the U.S.
currency following broad losses so far this month. [USD/]

Traders took profits on currencies which have rallied
against the dollar, including the euro.

World stocks retreated further from last week's 11-month
high as lower energy and commodity prices and caution ahead of
a U.S. Federal Reserve meeting and G20 summit prompted
investors to trim risky trades. [MKTS/GLOB]

U.S. stock indexes were mixed, though the more closely
watched S&P 500 index was weaker at midday on Monday. [.N]

U.S. crude oil inventories remain nearly 30 million barrels
above the year-ago period, despite the slide in crude oil
supply shown in the latest government inventory report, with
stocks down 4.7 million barrels in the week to Sept. 11.

And total gasoline and distillate supplies and heating oil
stocks were all at significant premiums to year ago. [EIA/S]

PRICES

* On the New York Mercantile Exchange at 12:09 p.m EDT
(1609 GMT), October crude CLV9 was down $2.52, or 3.5
percent, at $69.52 a barrel, trading from $69.10 to $72.04.

* The NYMEX October crude contract expires on Tuesday.

* In London, November Brent crude LCOX9 fell $2.72, or
3.81 percent, to $68.60 a barrel, trading from $68.17 to
$71.45.

* NYMEX October RBOB RBV9 fell 7.90 cents, or 4.31
percent to $1.7534 a gallon, trading from $1.7485 to $1.8365.

* NYMEX October heating oil HOV9 fell 6.97 cents, or 3.81
percent, to $1.7582 a gallon, trading from $1.7463 to $1.8280.

* The October/October RBOB crack spread <0#RB-CL=R> was at
$4.10 after ending at $4.92 on Friday. The October/October
heating oil crack spread <0#CL-HO=R> was at $4.31 after ending
at $4.73 on Friday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $15.78, based
on the October 2014 contract Friday settlement at $85.30. The
spread ended Friday at $13.26.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $71.07/$70.79

Technical support/resistance:

NYMEX crude: $69.52/$73.52

NYMEX heating oil: $1.7224/$1.85

NYMEX RBOB: $1.7130/$1.8722

For a full report on technicals, click on [ID:nLL477534]

MARKET NEWS

* Diesel demand in China continues to lag economic
recovery, Sinopec Corp's (0386.HK) chief said. [ID:nPEK367818]

* Oil refinery output in 16 European countries rose in
August from July, data from Euroilstock showed. But output was
still down 6.4 percent from levels August 2008. [ID:nLL551319]

* Copper fell on concerns about rising stocks and on the
firmer dollar. [ID:nLL546177]

* The Baltic Exchange's main sea freight index .BADI fell
to a four-month low on Monday amid weak demand. [ID:nLL438048]
(Reporting by Robert Gibbons and Gene Ramos; Editing by David
Gregorio)