* U.S. crude, product inventories highest since 1990
* Technicals show price headed to $76.63 []
* Coming Up: U.S. weekly jobless claims; 1230 GMT
(Recasts with rising prices, adds China comment)
By Alejandro Barbajosa
SINGAPORE, Aug 19 (Reuters) - Oil rose to over $76 on
Thursday, boosted by a rally in Asian equities as investors
focused on the prospects for accelerating Chinese demand for
natural resources.
U.S. September crude <CLc1> climbed 19 cents to $75.61 a
barrel at 0822 GMT, having earlier risen as high as $76.08. ICE
Brent <LCOc1> rose 35 cents to $76.82.
Shares in Hong Kong and Shanghai rose on Thursday with
resources outperforming the broader market as optimism about
Chinese demand grew and news of mega-mergers whetted appetite
in the sector. []
"You are seeing money coming back into resource stocks and
generally that is a sign that people are getting more
optimistic about demand from China," said Howard Gorges, a
director at South China Securities.
Commodity-related plays are finding favour after a hostile
takeover deal involving BHP Billiton <BHP.AX>, the world's
largest miner, and Canada's Potash Corp <POT.TO> that could run
into tens of billions of dollars, traders said. []
Oil prices have this week shown signs of stabilising above
$75, a level that most traders and analysts say is
representative of the current fundamental balance. That is also
close to the mid-point of this year's $64.24-$87.15 trading
range, as demand growth has been insufficient to drain ample
supplies.
The U.S. benchmark touched a six-week low at $73.83 on
Wednesday, after the Department of Energy said total U.S.
petroleum stockpiles last week soared to a 20-year high on a
weekly basis. Prices then tracked Wall Street higher on an
upbeat forecast from U.S. retailer Target.
The dollar strengthened by 0.33 percent against a basket of
currencies on Thursday, capping gains in oil prices triggered
partly by the highest settlement in China's key stock index in
more than three months. []
Prices might take their next cue from Thursday's weekly
U.S. jobless claims report, seeking evidence that the economic
recovery is continuing apace.
Initial claims for jobless benefits for the week ended Aug.
14 are expected to have fallen to 476,000 from 484,000 the week
previous, according to the median of forecasts from analysts
polled by Reuters. While still alarmingly high, a reduction in
the level of claims would at least be a hopeful step that high
U.S. unemployment may be in retreat. []
For most of this year, oil prices have hovered around the
sweet spot for the Organization of the Petroleum Exporting
Countries (OPEC) in the $70-$80 range, after the group relaxed
compliance with 2008 production cuts as demand rebounded.
PETROLEUM STOCKS SOAR
U.S. commercial crude and product inventories rose last
week to the highest level since the U.S. government began
tracking weekly data in 1990, statistics published on Wednesday
showed, a sign fuel supply is outpacing demand amid a slow U.S.
economic recovery.
In aggregate, total commercial crude and product stocks
rose to 1.130 billion barrels in the week to Aug. 13, according
to a weekly report from the Energy Information Administration,
above the previous weekly record high of 1.127 billion barrels
set in September 1990. []
Before EIA began breaking out weekly stocks data, it
measured monthly inventory levels, which once totaled as high
as 1.36 billion barrels in August 1980.
The rise in total commercial stocks came even as domestic
crude stocks fell 818,000 barrels and gasoline by 39,000
barrels. Distillate stocks rose 1.1 million barrels, their 12th
consecutive weekly increase.
Inventories at the key Cushing, Oklahoma, hub fell by
687,000 barrels to 37 million. Cushing is the delivery point
for the New York Mercantile Exchange's benchmark West Texas
Intermediate crude futures contract.
The U.S. National Hurricane Center said late on Wednesday a
tropical wave over the west central Caribbean Sea south of
eastern Cuba still had a low 20 percent chance of developing
over the next 48 hours as it moves west.
(With additional reporting by Vikram S. Subhedar and Farah
Master in HONG KONG; Editing by Manash Goswami)
