OPEC revises slightly higher 2010 demand forecast; API will report inventories By Polya Lesova, MarketWatch FRANKFURT (MarketWatch) -- Oil futures dropped below $76 a barrel on Tuesday, after their gains in the previous session, as expectations of rising supplies dampened sentiment in the energy markets. Crude oil for June delivery fell $1.31 to $75.49 a barrel in electronic trading on Globex. Oil prices rose 2% on Monday, boosted by the European Union's announcement of a $970-billion financial-stabilization plan aimed at preventing the debt crisis that started in Greece from spreading to other euro-zone nations. "Crude oil's price recovery was short-lived," said analysts at Commerzbank AG. "This suggests a change of mood on the oil market. Prices are thus set to retreat further." The Organization of the Petroleum Exporting Countries said Tuesday it revised slightly higher its estimate for global oil demand for 2010, but its estimate was "in line with the previous month's forecast." OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day. Later in the session, the U.S. Energy Information Administration will release its short-term energy outlook that will contain its latest demand projection. Also due, at 4:30 p.m. Eastern, are data on petroleum inventories from the American Petroleum Institute. Analysts polled by Platts expect an increase of 1.7 million barrels in crude supplies for the week ended May 7. They also project a rise of 850,000 barrels in gasoline stocks and a build-up of 1.28 million barrels in distillate inventories. Refinery utilization is projected to drop by 0.09 percentage point to 89.51%. The EIA will release its more closely watched data on inventories at 10:30 a.m. on Wednesday.

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