TN PETRÓLEO

Oil fell on Tuesday after President George W. Bush suspended deliveries to the U.S. emergency reserve to boost supply in the market, part of a range of moves to counter near-record prices.

At the same time, Bush directed the U.S. Environmental Protection Agency to find ways to ease new clean-burning gasoline rules, a step that could increase supplies of the motor fuel in the world`s largest oil consumer.

U.S. crude was $1.13 lower at $72.20 a barrel by 1710 GMT, after sliding nearly 2.5 percent on Monday from the $75.35 record high struck on Friday. London Brent crude was down 52 cents at $72.48.

Bush gave U.S. oil companies more time to pay back emergency loans of oil from the Strategic Petroleum Reserve, a stockpile used to guard against supply breaks.

"Our strategic reserve is sufficiently large enough to guard against any major supply disruption over the next few months," he said. "So by deferring deposits until the fall we`ll leave a little more oil on the market."

GASOLINE INVENTORIES

Gasoline inventories in the U.S. have fallen for the past seven weeks, raising concern about supply during summer as motor fuel demand peaks.

Specification changes for gasoline have added to supply worries. But Bush called on the EPA to use fully its authority to waive federal clean-burning gasoline rules this summer.

While prices fell after Bush`s comments, some traders said oil could rebound if U.S. gasoline stocks fall for an eighth week, as forecast by analysts in a Reuters poll.

"The question is, is this a short-lived phenomenon?" said Nauman Barakat of Macquarie Inc in New York. "If you get another big draw in gasoline tomorrow, this sell-off could be a one-day miracle."

The U.S. Energy Information Administration is scheduled to release its latest weekly inventory report on Wednesday.

SUPPLY WORRIES

Oil rose earlier on Tuesday on renewed worries over Iran`s nuclear program and a jump in demand in China, the world`s second largest oil consumer.

Iran`s chief nuclear negotiator, Ali Larijani, said his country would suspend ties with the U.N.`s nuclear watchdog, the International Atomic Energy Agency, if it were to be targeted by international sanctions.

Oil has hit record highs this year because of concern Iran`s dispute with the West could cut oil exports from the world`s fourth largest producer, supply losses in Nigeria and Iraq, and a flow of investor money into oil and other commodities.

In Nigeria, ExxonMobil (NYSE:XOM - news) evacuated non-essential staff from its 420,000 barrels per day Qua Iboe oil export terminal on Tuesday due to the threat of attack by militants, oil industry sources said. Exports remained normal, they added.

Strong demand has also helped to underpin prices, despite the surge in crude oil costs.

China`s apparent demand for oil rose 6 percent in March from a year earlier, moving closer to market forecasts on support from a roaring economy and stockpiling in anticipation of fuel price increases.

The strongest increase since September means the country used 6.44 million bpd.