By Christopher Johnson
LONDON (Reuters) - Oil fell toward $37 a barrel on Wednesday, tracking global equity losses and ahead of U.S. data expected to show an increase in crude stocks.
U.S. light crude for February delivery fell $1.82 to $37.16 a barrel by 7:12 a.m. EST, down from a session high of $39.69.
London Brent crude fell $2.10 to $38.26 a barrel.
Stock markets again set a bearish trend after the Dow Jones industrial average closed down 1.2 percent Tuesday, while Japanese and European equities followed suit..
"Oil prices continue to fall on the coat tails of equity markets and the trend suggests this will continue into the New Year," said Rob Laughlin, senior oil analyst at MF Global.
Oil prices have fallen about 60 percent since the start of this year and more than 70 percent since their record peak above $147 in July as demand from the United States, China, Japan and other industrialized nations has fallen.
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The Organization of the Petroleum Exporting Countries (OPEC) has already announced cuts of around 5 percent in global oil supplies and may call an emergency meeting before March if prices extend their near $110-per-barrel slide since summer, OPEC's President Chakib Khelil said Tuesday.
Oil was buoyed Wednesday by a dip in the dollar, which edged down against the yen, pressured by light selling from Japanese exporters after dismal U.S. growth and housing data suggested a prolonged recession ahead.
The euro also rose versus the dollar on cooling expectations for a euro zone interest rate cut in January.
But forecasts that U.S. government data would show a build in crude stocks for the third-straight week by 400,000 barrels weighed on prices.
Data for release later Wednesday was also expected to show distillate stocks rose 200,000 barrels last week, while gasoline was seen up 500,000 barrels, a Reuters poll showed.
(Additional reporting by Joe Brock & Fayen Wong in Perth; editing by James Jukwey)
