NYMEX-Crude stays weak after U.S. crude stocks build

TOKYO, June 2 (Reuters) - U.S. crude futures extended declines on Thursday after an unexpected jump in U.S. crude inventories, also hurt by an industry report that OPEC may increase oil output at its meeting next week.

OPEC will discuss increasing oil output by up to 1.5 million barrel per day (bpd) when it meets next week, with a 1 million-bpd rise the most likely outcome, industry publisher Energy Intelligence reported late on Wednesday, citing OPEC sources and delegates. [ID:nN01215131]

In a Reuters poll all 13 analysts and traders predicted OPEC would roll over its current output agreement, untouched since the group's record production cut in December 2008. [ID:nLDE74U27M]

FUNDAMENTALS

* NYMEX crude for July delivery was down 18 cents at $100.11 a barrel by 0043 GMT, after settling down $2.41 at $100.29 a day earlier.

* London Brent crude for July delivery was down 4 cents at $114.49 a barrel, after settling down $2.20.

* U.S. crude oil stockpiles jumped 3.5 million barrels last week, the American Petroleum Institute (API) said after the settlement, against expectations stocks would be lower.

Gasoline stockpiles rose 1.5 million barrels, while distillate inventories fell 1.4 million barrels, the API report showed.

* A MasterCard Advisors' SpendingPulse report showed on Wednesday that U.S. retail gasoline demand fell last week versus a year earlier, though demand rose from the previous week as drivers geared up ahead of the Memorial Day holiday weekend. [ID:nN01189612]

* Iran said preserving OPEC's production ceiling was the only way to control the oil market, the semi-official Mehr news agency quoted Iran's OPEC governor Mohammad Ali Khatibi as saying. [ID:nMOS136339]

MARKETS NEWS

* Japan's benchmark Nikkei share average fell on Thursday, dragged lower by a fall in Wall Street shares after disappointing data and growing political uncertainty as Japanese Prime Minister Naoto Kan faces a no-confidence vote in parliament later in the day.

* The euro plunged to a session low against the dollar on Wednesday after Moody's cut Greece's credit rating by three notches, citing a growing risk that the government will fail to stabilize its debt position without a restructuring.

DATA/EVENTS

* The following data is expected on Thursday: (Time in GMT)

- 1230 U.S. Unemployment claims Weekly

- 1400 U.S. Factory orders April

- 1430 U.S. EIA natural gas stocks Weekly

- 1500 U.S. EIA petroleum stocks Weekly

- Europe ARA weekly oil product inventory data (Reporting by Osamu Tsukimori; Editing by Michael Watson)