RTRS:UPDATE 4-Oil slips below $102 on abundant supplies worries
* Dollar under pressure as Fed could maintain stimulus for now
* OPEC expected to maintain output policy in Friday meeting
* Coming Up: U.S. EIA weekly crude stocks; 1500 GMT (Updates throughout)
By Ron Bousso
LONDON, May 30 (Reuters) - Oil prices fell below $102 a barrel on Thursday and were on track for a third straight month of losses amid a tepid global demand outlook and abundant supplies in the United States.
Those factors outweighed a weakening of the dollar, on expectations the U.S. Federal Reserve will maintain its stimulus programme. A lower dollar makes commodities cheaper for traders in other currencies.
Brent crude was down 83 cents to $101.60 a barrel by 1035 GMT, extending Wednesday's $1.80 drop and heading for a near-7-percent monthly loss.
U.S. oil fell 63 cents to $92.50, after ending $1.88 lower the previous session following data that showed a surprise gain in U.S. crude and gasoline stockpiles.
"Given the weak demand and over-supply, the pressure is definitely on the downside and that will continue until we some evidence of strong economic growth," said Michael Hewson, analyst at CMC Markets.
Wednesday's report from the American Petroleum Institute showed a 4.4 million barrel increase in U.S. crude inventories for the week to May 24. That was much higher than a Reuters forecast for a fall of 400,000 barrels.
Investors are now waiting for data from the U.S. Energy Information Administration (EIA) later in the day for clues on the outlook for demand from the top oil consumer.
"On the energy front if today's EIA statistics on U.S. oil inventories share the view of the API then yesterday's selling will certainly continue this afternoon," PVM analyst Tamas Varga said.
China's official Purchasing Managers' Index (PMI), to be released on Saturday, is expected to weaken in May, a Reuters poll showed, adding to fears that the world's No.2 economy and oil consumer is losing steam.
Friday's meeting of the Organization of the Petroleum Exporting Countries (OPEC) was also on the radar for investors looking for indications on global oil supply.
"No one is expecting a bullish surprise out of the OPEC meeting so we will continue to see stocks build in the world," said Olivier Jakob, analyst at Petromatrix.
OPEC looks set to keep its output policy on a steady course for 2013, retaining it at 30 million barrels per day. Saudi Arabia, its top oil producer, has already set the stage for a swift and easy deal.
"Let me tell you this, this is the best environment for the market. Supplies are plentiful, demand is great, balanced -inventories are balanced," influential Saudi Oil Minister Ali al-Naimi said on Tuesday.
Oil has held above $100 through most of 2012 and this year, and while high by historical standards, it is well below the $125 that rang alarms in major consumer countries last year. (Additional reporting by Manash Goswami; editing by Himani Sarkar and Keiron Henderson)
