NYMEX-Crude stay weak as U.S. stockpiles weigh

TOKYO, Jan 21 (Reuters) - U.S. crude futures stayed weak on Friday, a day after a sell-off amid an unexpected rise in U.S. crude stockpiles and worries that China might tighten monetary policy to fight inflation.

FUNDAMENTALS

* NYMEX crude for March delivery <CLc1> was down 14 cents at $89.45 a barrel by 0029 GMT.

* On Thursday, U.S. February crude <CLG1> settled $2 lower at $88.86 at its expiry, down for the third day in a row, after having hit a session low of $88 earlier, the lowest since Jan. 7. U.S. March crude <CLH1> closed down $2.22 at $89.59.

* U.S. crude oil stockpiles rose 2.62 million barrels in the week to Jan. 14, defying forecasts for a 400,000 barrel drawdown, data from the U.S. Energy Information Administration showed. [EIA/S]

* China's implied oil demand surged 19 percent to a record 9.6 million barrels per day (bpd) in December, ending the year with record refining volumes and strong diesel imports to ease a domestic diesel shortage. [ID:nTOE70I060]

MARKETS NEWS

* The dollar clung on to overnight gains early in Asia on Friday in the wake of upbeat data, while investors were wary of getting too bearish on the euro after a recent rally turned sentiment around. [USD/]

* U.S. stocks fell on Thursday as tech and materials earnings failed to live up to expectations, threatening to short-circuit a seven-week run. [.N]

* U.S. home resales jumped more than expected in December and new jobless claims last week posted their biggest decline in nearly a year, showing two key economic trouble spots on the mend. [ID:nN20105802]

* Iran warned it would go on enriching uranium if it came under attack as its negotiators prepared for talks with six world powers on Friday aimed at defusing a crisis over Iran's disputed nuclear programme. [ID:nLDE70J1A2]

DATA/EVENTS

* The following data is expected on Friday:

0630 China Final trade data Dec

0758 France Markit/CDAF Mfg FlashPMI Jan

0900 Germany Ifo business climate Jan

0900 Germany Ifo current conditions Jan

0900 Germany Ifo expectations Jan

1400 EZ Euroilstock refinery output Dec

1530 U.S. ECRI index Weekly

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PRICES Oil prices as of 0029 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude MAR1 $89.45 -0.14 -$2.22 -2.42% $90.54 Heat Oil FEB1 262.06 -0.26 -3.30 -1.24% 256.11 RBOB FEB1 242.47 +0.22 -5.91 -2.38% 243.96 Natgas FEB1 $4.685 -0.010 +$0.134 +2.94% $4.411 ICE Contracts Brent MAR1 -- +0.00 -$1.58 -1.61% $95.69 Gasoil FEB1 -- +0.00 -$15.00 -1.83% $788.79 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by Risa Maeda; Editing by Michael Watson)