RTRS:Brent oil slips as global economy worry persists
* Moody's leaves Spain sovereign rating at investment grade
* Saudi oil sales to U.S. robust despite refinery upsets
* Coming Up: U.S. EIA petroleum status report; 1430 GMT (Updates prices)
By Simon Falush
LONDON, Oct 17 (Reuters) - Brent crude oil fell on Wednesday as lingering worry about the global economy overshadowed relief that Spain avoided a ratings downgrade and optimism prompted by firm U.S. corporate results.
Brent fell 11 cents to $113.89 a barrel by 1000 GMT. The November contract, which expired on Tuesday, closed 73 cents lower at $115.07, while December settled 40 cents lower at $114.00. U.S. oil gained 11 cents to $92.20.
Brent gained in early trade after Moody's Investors Service affirmed its investment grade rating on Spain helping ease investor worries that the crisis in the region is worsening.
Investors were reluctant to buy into oil as concern about the demand outlook remained in focus, and crude stayed towards the lower side of its trading range.
"The battle continues between the negativity from the slowing of the global economy compared to what global stimulus programmes might do to the economy going forward while geopolitics has continued to remain an issue for market participants," said Dominick Chirichella of New York's Energy Management Institute.
Oil was supported by supply concerns, as the European Union slapped fresh sanctions on Iran.
European Union governments imposed sanctions against major Iranian state companies in the oil and gas industry and strengthened restrictions on the central bank.
The United States and the European Union are putting pressure on Iran to stop its disputed nuclear programme, while Tehran says it needs the technology to generate electricity.
STOCKPILES BUILD
Prices were also under pressure from data showing U.S. crude inventories rose more than expected last week, while distillate stockpiles showed a surprise build, data from the American Petroleum Institute showed.
Crude inventories rose by 3.7 million barrels in the week to Oct. 12, against a build of 1.7 million forecast in a Reuters poll. Participants await a report later in the day by the U.S. Energy Information Administration for details of the stockpile.
Market expectations for another "build in U.S. crude stockpiles highlight bearish market sentiment over excess U.S. oil supplies and these concerns could be magnified after this morning's American Petroleum Industry report showed an even higher build of 3.7 million barrels," analysts at ANZ said.
"(The) EIA report will be a key price driver, but in the meantime there could be a downward bias."
Adding to the improved supply picture, Saudi Arabia pumped around 9.77 million barrels per day (bpd) of crude oil in September, an industry source said.
The kingdom appears to be keeping its pledge to ensure global markets are well supplied with oil, as a Reuters analysis of U.S. import data shows sales to the world's top consumer have dipped less than 10 percent from a four-year high hit this year. (Additional reporting by Alice Baghdjian in London and Manash Goswami in Singapore; editing by James Jukwey)
