* U.S., Japan slowdown seen as negative for oil demand
* Coming Up: API U.S. petroleum inventory report; 2030
* For a technical view, click: []
(Adds quote, details, updates prices, changes dateline from
SINGAPORE)
By David Sheppard
LONDON, Aug 17 (Reuters) - Oil snapped a five-day losing
streak to rebound above $76 a barrel on Tuesday, as firmer
equity markets and weaker dollar edged out concerns about the
pace of global economic recovery.
U.S. crude for September delivery <CLc1> rose 91 cents to
$76.15 a barrel by 0918 GMT, recovering from a one-month low of
$74.86 a barrel hit on Monday.
The new ICE Brent crude future contract for October delivery
<LCOc1> gained $1.20 to $76.82 a barrel. The September contract
expired at $74.85 on Monday.
Since hitting a three-month high of almost $83 a barrel at
the beginning of August, prices have declined sharply over the
past two weeks, shedding more than 9 percent on doubts about the
pace of the global recovery and rapidly rising U.S. fuel
inventories.
U.S. demand for gasoline normally peaks in the driving season
from late May to early September as holidaymakers take to the
roads. But stockpiles this year have increased for most of that
period, bucking the normal trend.
"As you approach this time in the Northern Hemisphere, the
driving season is abating, so I don't see that the demand for
gasoline will be heavy," said Peter McGuire, managing director
at CWA Global Markets in Sydney.
Disappointing economic growth data from Japan and sluggish
manufacturing numbers in the United States weighed on prices on
Monday, but traders will be eyeing the latest U.S. figures on
industrial production, producer prices and housing starts on
Tuesday for further clues on the state of the recovery.
[] []
On Tuesday, European equity markets were up slightly, but
the FTSEurofirst 300 <> is almost flat for the year as a
whole, with many analysts saying markets currently lack
direction []. Japan's Nikkei average slid 0.4 percent on
Tuesday to its lowest close in more than eight months.
"We are still trading very strong correlations on U.S. crude
and we are readjusting in line with implied moves in equity
markets, volatility and the euro/dollar," Petromatrix trading
adviser Olivier Jakob said.
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Graphic on oil's correlations with stocks and the dollar:
http://link.reuters.com/wyq35n
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The dollar was down slightly against a basket of currencies
<.DXY>. A weaker dollar makes oil cheaper for holders of other
currencies.
BULGING INVENTORIES
Forecasts ahead of weekly U.S. petroleum inventory reports
are for gasoline stockpiles to have remained little changed last
week when they stood close to an all time high. []
The American Petroleum Institute will publish industry
statistics late on Tuesday, followed by government data from the
Energy Information Administration (EIA) on Wednesday.
Gasoline stockpiles were forecast to have declined by just
200,000 barrels last week, a Reuters survey showed, while
supplies of distillate fuel including diesel were expected to
have gained 1.3 million barrels.
Crude inventories probably fell 1.1 million barrels,
according to the poll.
(Additional reporting by Emma Farge in London and Alejandro
Barbajosa in Singapore; editing by Alison Birrane)
