* New US jobless claims fall, Q2 growth revised up
* Oil poised for best month since mid-2009
* French strike, US Midwest ICM support oil
* Political unrest rocks OPEC-member Ecuador
(Recasts, updates prices, market activity; changes byline and
dateline from previous LONDON)
By Joshua Schneyer
NEW YORK, Sept 30 (Reuters) - Oil rose to a seven-week high
above $79 a barrel on Thursday after lower-than-expected U.S.
jobless claims and revised second-quarter economic growth data
stoked optimism for higher fuel demand in the world's top oil
consumer.
As September draws to a close, U.S. oil futures were on
track for their biggest monthly gain since May of 2009, and a
rally of around 4 percent in the third quarter.
"Crude prices are really latching on to any indication of
improving oil demand going forward," said Matt Smith, analyst
with Summit Energy in Louisville, Kentucky.
Oil <CLc1> was up $1.16 at $79.02 by 12:20 p.m. EDT (1620
GMT) after touching a session high of $79.47 a barrel, the
highest since Aug. 11. ICE Brent crude futures <LCOc1> rose 81
cents to $81.58 a barrel.
New U.S. jobless benefit claims fell more than expected
last week, signaling a potential job market recovery, while
second-quarter U.S. growth was revised up to 1.7 percent, from
an earlier estimate of 1.6 percent. []
The U.S. dollar strengthened and U.S. stock markets
dropped, tempering oil's gains.
"There's positive momentum in oil markets, but some
recovering strength in the dollar and a drop in equities has
taken away from earlier gains," Smith said.
The Institute for Supply Management-Chicago on Thursday
said its U.S. Midwest business activity index rose in September
to the highest since July, beating expectations.
The U.S. dollar firmed against a basket of foreign
currencies <.DXY>. A stronger dollar can limit gains in oil,
making the commodity, priced in dollars, more expensive for
holders of foreign currency. []
Weekly data on Wednesday showed larger-than-expected
drawdowns in crude and refined product inventories in the
United States. []
Oil stocks at Cushing, Oklahoma, the delivery point for
NYMEX crude futures, fell in the week to Sept. 28 to their
lowest weekly level since late April, according to energy
industry data provider Genscape.[]
Thursday's oil price rise outpaced other commodities, which
mostly fell. The Reuters-Jefferies CRB index <.CRB> fell after
hitting an 8-month high on Wednesday, but was poised to end the
third quarter up about 10 percent. [] (Graphic:
http://r.reuters.com/was95p )
ECUADOR UNREST, HEATING OIL
There were no known disturbances to oil shipments from OPEC
member Ecuador, where chaotic police strikes set off a wave of
political unrest.[]
Ecuador's military declared that troops in the South
American country remain under the control of President Rafael
Correa. Troops closed some Ecuadroean airports and, according
to a government minister, Correa was considering dissolving
Congress, which could allow him to temporarily rule by decree
in the Andean country of 14 million.
NYMEX heating oil futures rose 1.7 percent and the contract
was set to be the strongest performer in the oil futures
complex for September, outpacing gains in crude oil and
gasoline, on strong export demand for distillates, according to
Reuters data. <HOV0>
ICE gas oil, Europe's benchmark for diesel and heating oil,
was trading 3.2 percent higher by 11:57 a.m. EDT.<LGOc1>
Brokers said some support came from a French rolling port
strike at the country's strategic Fos-Lavera oil hub near
Marseille, which entered its fourth day and threatened
operations at French and Swiss refineries. []
The strike blocked a total of 24 oil tankers, the port
authority said.
(Additional reporting by Robert Gibbons and Gene Ramos in
New York, Zaida Espana and Ikuko Kurahone in London, Florence
Tan in Singapore. )
