SINGAPORE, Oct 10 (Reuters) Oil fell to around $80 on Wednesday, with dealers taking some profits from the previous day's rally on worries over lower heating fuel stockpiles in the Northern Hemisphere ahead of peak winter demand.
U.S. crude for November dropped 11 cents to $80.15 a barrel at 0543 GMT, after gaining more than a $1.24 on Tuesday. London Brent crude lost 11 cents to $77.38.
European oil product inventories eased in September, industry monitor Euroilstock reported on Tuesday, while the U.S.
government said demand for heating oil would be higher this year versus 2006, due to forecasts of cooler weather.
With the peak of the Atlantic hurricane season past, oil traders are beginning to shift their focus toward the winter, when a cold spell can quickly drain inventories and lift prices.
''We have to keep an eye on the lower stock levels, but that will be more of the focus in November,'' said Ken Hasegawa, a vice-president at Fimat Japan Inc.
''It's still a little early, but this concern will always support the market.'' European distillate stocks last month fell 5.25 million barrels, or 1.3 percent, from August levels, while gasoline inventories dropped by 6.80 million barrels, or 5.2 percent, from a year earlier, Euroilstock said.
U.S. weekly oil inventory, due out a day later than usual on Thursday this week, is expected to show a 900,000-barrel build in crude stocks, a 400,000-barrel draw in distillates -- including heating fuel -- and a 100,000-barrel build in gasoline. S]The U.S.
Energy Information Administration (EIA) said consumers in the world's top energy market will pay 10 percent more to warm their homes this winter than last year.
Government weather experts say this winter will be colder than last year's, but warmer than the norm.
Further support to commodities came from a weakening dollar, which underperformed against the euro on Tuesday after a two-day rally. The dollar pulled further away from its recent two-week high on Wednesday.
Some investors had bought crude and commodities in recent weeks as a hedge against the weaker dollar, which reached multi-year lows against other major currencies following a cut in U.S. interest rates last month.
Support also came after Turkey's prime minister gave the green light on Tuesday for possible military action in northern Iraq to attack Kurdish rebels in the OPEC country.
REUTERS SBA GC1247