>Nymex crude dn with equities; weak fundamentals

Singapore - Crude oil futures lost ground Thursday in Asia as rising U.S. stockpiles and weakening share markets fanned concerns about the outlook for the economy and for energy demand.

Asian equities were dragged lower by financial stocks, mirroring a late pullback Wednesday on Wall Street, while overnight U.S. government oil data showing further increases in inventories weighed on sentiment.

"The market held up relatively well in our view given the seemingly bearish (Energy Information Administration) stats," said Jim Ritterbusch, president at trading advisory firm Ritterbusch and Associates.

"Nonetheless, we viewed the weekly stats as decidedly bearish given a larger-than-expected crude stockbuild. The jump in (refinery) runs boosted production of both gasoline and distillates and contributed to unexpected increases in both key product categories."

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at $48.61 a barrel at 0705 GMT, down 24 cents in the Globex electronic session.

Nymex heating oil for May slipped 77 points to 132.22 cents a gallon, while May reformulated gasoline blendstock traded at 138.13 cents, 93 points lower.

Oil prices in recent weeks have found support from firmer equity markets, which many traders interpreted as a sign the worst of the economic recession may be behind, but fundamentals meantime have continued to weaken.

Asia's leading oil consumer nations - China, Japan and South Korea - Wednesday each reported steep on-year drops in their March crude imports despite lower prices, showing demand for fuels remained soft.

The EIA, in its Weekly Petroleum Status Report overnight, also posted sizable increases in crude, gasoline and diesel stockpiles.

Commercially held U.S. crude stocks climbed for the sixth straight week in the week to April 17 to 370.6 million barrels, staying at their highest levels since September 1990.

Gasoline stockpiles - closely watched in the lead-up to the U.S. summer driving season - have also risen about 6% above the five-year average level.

"The data reinforced our bearish view of the complex," Ritterbusch said in a note to clients.

"We suggest maintaining short June (Nymex crude) holdings, keeping stop protection at the $52.60 level in anticipation of an eventual price decline to the $43-$44 area."

At 0705 GMT, oil prices on London's ICE Futures exchange also fell.

Brent crude for June slipped 31 cents to $49.50 a barrel, while May gasoil changed hands at $423.50 a metric ton, losing 75 cents from Wednesday's settlement.

Source: COMMODITIESCONTROL