NEW YORK, July 27 (Reuters) - U.S. crude futures fell on Wednesday as the debt-limit stalemate in Washington continued to keep investors worried about economic slowing if a default is not avoided. Crude's weakness came ahead of government oil inventory data due later in the morning and after A Republican plan to cut the U.S. deficit faced delay and stiff opposition, raising the risk of default and a ratings downgrade. Republican and Democratic leaders are scrambling to find common ground before Aug. 2, when the U.S. government is expected to hit its $14.3 trillion borrowing limit that could trigger a default. [ID:nN1E76P2HJ] U.S. crude extended losses after a report showed durable goods orders fell in the United States in June, against a forecast for a slight rise. [ID:nCAT005478] The dollar index .DXY was stronger on the euro's weakness, though the greenback hit a record low against the Swiss franc and a four-month low against the yen and was poised for further losses as efforts to avert a U.S. debt ratings downgrade or default remained deadlocked. [USD/] A stronger dollar can pressure dollar-denominated oil by making it more expensive for consumers using other currencies and by sending investors away from commodities markets. The industry group American Petroleum Institute's said late on Tuesday that U.S. crude stocks rose 4.0 million barrels last week. Gasoline stocks fell 639,00 barrels and distillate stockpiles rose 2.9 million barrels, the API said. [API/S] U.S crude stocks were forecast to have fallen 1.7 million barrels, according to a Reuters survey of analysts. [EIA/s] Gasoline stocks were expected to be up 400,000 barrels, with distillates estimated to be up 1.9 million barrels. The government's inventory report from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. EDT (1430 GMT). FUNDAMENTALS * On the New York Mercantile Exchange, September crude CLU1 fell $1.16 to $98.43 a barrel by 8:58 a.m. EDT (1258 GMT), trading from $98.31 to $99.50. * A low-pressure system near the Yucatan channel has a high 80 percent chance of developing into a tropical cyclone during the next 48 hours as it moves west-northwestward, the U.S. National Hurricane Center said. [ID:nL3E7IR2Z5] * Brent crude prices will soften in second-half 2011 to around $110 a barrel on worries that government debt problems and sluggish growth will cap demand, which is already dented by high energy prices, a Reuters poll showed. [ID:nL6E7IQ0RH] * Japan's commercial crude inventories fell 4.3 percent last week to their lowest in nearly four months, industry data showed, reflecting a jump in gasoline demand as more drivers took to the road over a three-day weekend. [ID:nL3E7IR0O0] MARKETS NEWS * Gold soared to a record high for the sixth time in two weeks and the dollar collapsed to another record low against the Swiss franc as investors sought safety from a possible U.S. debt default. [MKTS/GLOB] * Copper slipped after an almost 2 percent increase the previous session as a stronger dollar index and worries over slower demand from top consumer China offset supply worries due to strikes at the world's largest copper mine. [MET/L] UPCOMING DATA/EVENTS * U.S. Energy Information Administration oil inventory data, 10:30 a.m. EDT (1430 GMT), Wednesday. * U.S. weekly jobless benefit claims data, 8:30 a.m. EDT (1230 GMT), Thursday 8:58 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 98.43 -1.16 -1.2% 98.31 99.50 39,185 205,209 CLc2 98.88 -1.13 -1.1% 98.76 99.91 9,026 59,115 LCOc1 117.81 -0.47 -0.4% 117.50 118.50 44,208 177,466 RBc1 3.1657 0.0121 0.4% 3.1510 3.1710 3,185 31,080 RBc2 3.1030 0.0045 0.2% 3.0909 3.1084 7,964 35,706 HOc1 3.0999 -0.0135 -0.4% 3.0960 3.1125 1,506 29,834 HOc2 3.1120 -0.0131 -0.4% 3.1077 3.1243 4,280 39,156 * NYMEX crude oil for September CLc1 fell $1.16 to $98.43 a barrel by 8:58 a.m. in volume of 39,185 lots. (Reporting by Robert Gibbons; Editing by John Picinich)

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