NYMEX-Crude slips as yuan uncertainty grows

SINGAPORE, June 22 (Reuters) - Crude prices fell on
Tuesday, giving back some of its gains in the previous session,
as uncertainty grew about how much Beijing would allow its yuan
currency to appreciate and the longer-term impact that would
have on China's oil imports.

FUNDAMENTALS

* Front-month West Texas Intermediate on Monday touched an
intraday 6-½ week high near $79 a barrel, but pulled back as
charts indicated technical resistance. The July contract ended
64 cents higher at $77.82. By 0023 GMT on Tuesday, NYMEX U.S.
crude futures had given back about half that.

* Monday's rally came after China's central bank allowed
the yuan CNY=CFXS to surge by nearly its 0.5 percent daily
limit in the spot market, following a pledge at the weekend to
make the currency more flexible. Commodities and other assets
rallied on the prospect of China's having even stronger
purchasing power.

* Traders across markets awaited the publication of
Tuesday's yuan mid-point at around 0115 GMT, the departure
level for the trading session, to see if it strengthened from
Monday, when the People's Bank of China set it unchanged from
Friday. [ID:nN20208975]

* But some traders, analysts and economists questioned
whether a stronger yuan would have a tangible impact on China's
oil imports.

* U.S. crude oil inventories dropped by 1.3 million barrels
last week as imports declined, a preliminary Reuters poll of
analysts showed on Monday, before Tuesday's weekly report from
the American Petroleum Institute. [ID:nN21499171]

The poll also forecast an average 1.3 million barrel
increase in distillates and a slim 100,000 barrel decline in
gasoline stocks.

MARKETS NEWS

* ICE Brent crude for August delivery LCOc1 slid 30 cents
to $78.52 a barrel.

* U.S. stocks fell and metals pared gains on Monday on
uncertainty over how much the China would let the yuan rise
after it vowed to allow a more flexible exchange rate.
[MKTS/GLOB]

DATA/EVENTS

* The following data is expected on Tuesday:

Germany Ifo business/conditions/expectations Jun 0800 GMT

U.S. ICSC/GS weekly report 1145 GMT

U.S. Redbook weekly mm 1255 GMT

U.S. Richmond Fed mtg 1400 GMT

U.S. Existing home sales May 1400 GMT

U.S. API weekly petroleum stocks 2030 GMT

RELATED NEWS

Oil services companies went to court on Monday seeking to
overturn President Barack Obama's six-month ban on deepwater
drilling in the Gulf of Mexico after the worst oil spill in
U.S. history. [ID:nN20211308]

PRICES
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude JUL0 $77.49 -0.33 +$0.64 +0.83% $73.57
Heat Oil JUL0 214.03 -0.56 +1.70 +0.80% 200.02
RBOB JUL0 214.00 -0.28 -0.48 -0.22% 203.88
Natgas JUL0 $4.870 -0.003 -$0.124 -2.48% $4.611
ICE Contracts
Brent AUG0 $78.56 -0.26 +$0.60 +0.77% $74.23
Gasoil JUL0 $682.75 -7.25 +$9.00 +1.32% $637.76
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.

(Reporting by Alejandro Barbajosa; Editing by)