* Eyes on U.S., euro zone central bank for stimulus moves
* OPEC output falls 450,000 bpd in July - Reuters survey
* U.S. crude stocks seen down last week on lower imports
* Coming up: Fed policy meeting on Tuesday, Wednesday
(Updates with Brent settlement, U.S. inventory poll, adds
details)
NEW YORK, July 30 (Reuters) - Brent oil ended down for the
first time in five sessions on Monday as worries that expected
stimulus from the United States and Europe may fail to lift
their economies overshadowed signs of lower OPEC production.
Supply from the 12-member Organization of the Petroleum
Exporting Countries (OPEC) fell by 450,000 barrels per day (bpd)
in July to 31.18 million bpd, a Reuters survey showed, as
Western sanctions further cut supply from Iran and due to
reduced shipments from Angola, Saudi Arabia and Libya.
"The fundamentals are looking more constructive for the
second half of this year, with the supply-and-demand balance now
close to a deficit compared to the large surplus in the first
half," said Katherine Spector, a commodity strategist at the
Canadian Imperial Bank of Commerce in New York.
"The bearish factor is liquidity. Trading has been
relatively slow and hedge funds and other investors don't appear
to want to commit in the current economic environment."
Slowing growth in the United States, the world's top oil
consumer, has triggered expectations of stimulus measures from
the Federal Reserve, which meets on Tuesday and Wednesday.
European Central Bank President Mario Draghi also promised
last week to do what it takes to protect the euro, raising
expectations of new policy measures to solve the debt crisis
when the ECB meets on Thursday.
But analysts say markets may be hoping for too much.
"Speculation over central bank action looks like it has gone
too far," said Carsten Fritsch, an oil analyst at Commerzbank in
Frankfurt.
"The euro has already begun to retreat and oil has also
started to weaken. The move upwards seems exaggerated."
In London, Brent crude for September delivery
settled at $106.20 a barrel, edging down 27 cents.
U.S. September crude settled at $89.78 a barrel,
falling 35 cents, also ending a four-day winning streak.
Brent has risen more than 8 percent in July while U.S. crude
has gained around 6 percent, supported largely by hopes of more
economic stimulus.
Brent's premium against U.S. crude rose slightly to $16.42,
after closing at $16.34 on Friday.
Trading volumes were light, with Brent dealings down 55
percent from the 30-day average and U.S. crude down 34 percent
from its 30-day average, according to Reuters data.
Thursday's ECB meeting is in sharp focus, given the threat
the long-running euro zone crisis poses to the global economy.
U.S. Treasury Secretary Timothy Geithner and Germany's
Finance Minister Wolfgang Schaeuble issued a joint statement
after their meeting on Monday that emphasized "the need for
policymakers to adopt and implement all reform steps required to
deal with the financial crisis and crisis of confidence."
Optimism about ECB action caused European shares to rally
though U.S. equities edged lower following their best two-day
run this year as investors awaited the central bank meetings.
The euro fell against the dollar for the first time in four
days as investors turned cautious.
OPEC OUTPUT FALLS, U.S. DATA AWAITED
OPEC's production has declined since it pumped 31.75 million
bpd in April, the highest since September 2008, based on Reuters
surveys. The biggest drop in supplies in July came from Iran,
whose crude is subject to a European Union embargo that started
on July 1 barring EU insurance firms from covering Iran's
exports.
Iran's output fell by 150,000 bpd to 2.8 million bpd, the
lowest level in more than two decades, according to the U.S.
Energy Information Administration.
Saudi Arabia trimmed supply slightly in July because of
lower demand from some customers, such as in the United States,
sources in the survey said. It still kept output at 10 million
bpd, near the highest level in decades.
Oil prices have found support from escalating tensions in
the Middle East, with rising violence in Syria threatening to
destabilise the region further.
Iran is still in a face-off with the West over its nuclear
programme, fuelling uncertainty about supply in the oil markets.
The West insists Tehran is trying to develop a nuclear bomb, but
the Islamic republic has vehemently denied this assertion.
On Tuesday, the industry group American Petroleum Institute
will release its report on how U.S. petroleum inventories
shifted for the week to July 27. That will be followed by U.S.
government data for the same period on Wednesday.
A Reuters poll of analysts ahead of the reports forecast
that U.S. crude stockpiles fell by 1.6 million barrels last week
due to lower imports.
(Additional reporting by Gene Ramos in New York; Christopher
Johnson in London and Luke Pachymuthu in Singapore; Editing by
Marguerita Choy, David Gregorio and Dale Hudson)