RPT-NYMEX-Crude down on gasoline build, Wall Street dip

(Repeating without any changes)

* EIA: Crude, distillate stocks down, gasoline up

* Wall Street slides on Obama banking proposal

NEW YORK, Jan 21 (Reuters) - U.S. crude oil and refined
product futures slumped to four-week lows on Thursday in a
sell-off triggered by government data showing an unexpected
large build in gasoline stocks last week.

A slide in U.S. equities after President Barack Obama aired
a proposal to limit banks' risk-taking also pressured the
energy markets.

Heating oil futures fell, despite a large supply drawdown,
as the four-week average demand for distillates, of which
heating oil is a major component, shrank.

Traders shrugged off a small drop in crude inventories.

In early trading, crude futures seesawed with the dollar,
but were supported by Tuesday's report from the American
Petroleum Institute showing a surprise drop in crude stocks.

For details see [EIA/S] and [API/S]

By the afternoon, the greenback was down sharply against
the yen and had erased gains against the euro in reaction to
Obama's proposal. [USD/]

Wall Street tumbled on the Obama proposal. [.N]

"There doesn't seem to be a direct link between oil and
President Obama's proposal to limit bank risks. But a sell-off
in the stock market on his proposal appeared to have helped
pressure energy markets," said Jim Ritterbusch, president of
Ritterbusch & Associates.

"In general, despite the inventory drawdowns reported
today, we still have ample supplies of crude and products. At
the same time, policy shifts in China that could cool off its
appetite for oil is also a factor in the crude sell-off,"
Ritterbusch added.

For commodity markets, Obama's plan to curtail financial
market risk-taking at the biggest U.S. banks have much broader
and deeper implications than the position limits proposed last
week by the Commodity Futures Trading Commission.
[ID:nN21221012]

U.S. workers filing new applications for unemployment
insurance unexpectedly rose last week, rising for a third
straight week. [ID:nN21208641].

PRICES

* On the New York Mercantile Exchange, new front-month
March crude CLH0 settled down $1.66, or 2.14 percent, at
$76.08 a barrel, down a second day. It traded from $75.66, the
lowest since Dec. 23's intraday low of $74.25, and $78.36.

* In London, March Brent crude LCOH0 ended down $1.74, or
2.28 percent, at $74.58 a barrel, trading from $74.23, lowest
since Dec. 23's $73.24, to $76.82.

* NYMEX February RBOB RBG0 settled down 6.36 cents, or
3.11 percent, at $1.9829 a gallon. It traded from $1.9775,
lowest since Dec. 23's $1.8969, to $2.0689.

* NYMEX February heating oil HOG0 ended down 3.55 cents,
or 1.76 percent, at $1.9856 a gallon. It traded from $1.9779,
the lowest since Dec. 23's $1.9410, to $2.0351.

* The March/March heating oil crack spread <0#CL-HO=R>
ended at $7.32, down from $7.70 on Wednesday. The March/March
RBOB crack spread <0#RB-CL=R> ended at $7.20, dropping from
$8.68 on Wednesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 edged up to $14.26,
from $14.20 on Wednesday. The March 2015 contract settled
Thursday at $90.34, down $1.60, or 1.74 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $79.54/$79.77

For a full report on technicals, click on [ID:nLDE60J1TI]

MARKET NEWS

* U.S. crude stocks fell 400,000 barrels to 330.6 million
barrels last week, the EIA said, against the forecast for a 2.4
million barrel draw and the API's 1.8 million barrel decline.

* Crude stored at the NYMEX delivery hub in Cushing,
Oklahoma, dropped 800,00 barrels to 33.7 million barrels, down
for two straight weeks, after hitting a record 35.7 million
barrels in the week to Jan. 1.

* Distillate stocks fell 3.3 million barrels to 157.1
million barrels, against the forecast for just a 100,000 barrel
drawdown but close to the API's 3.4 million barrel decrease.

* Heating oil stocks, a major component of distillates,
fell 1.1 million barrels to 40.9 million barrels, far less than
the API's 2.4 million barrel decline.

* Gasoline supplies jumped 3.9 million barrels, rising for
a third week in a row, to 227.4 million barrels, much higher
than the forecast for a 1.7 million barrel increase and
dwarfing the API's 667,000 barrel increase.

* Refinery utilization fell 2.9 percentage points to 78.4
percent of capacity, the lowest rate since the 1980s, excluding
hurricanes. The drop was bigger than the 0.4 percentage point
decline forecast and close to API's 2.5 percentage point drop.
(Reporting by Geme Ramos and Robert Gibbons; Editing by David
Gregorio)