* U.S., Japan slowdown seen as negative for oil demand
* Coming Up: API U.S. petroleum inventory report; 2030
* For a technical view, click: []
(Updates prices, details)
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 a weaker dollar outweighed concerns about the pace
of global economic recovery.
U.S. crude for September delivery <CLc1> rose 81 cents to
$76.05 a barrel by 1142 GMT, recovering from a one-month low of
$74.86 hit on Monday.
The new ICE Brent crude future contract for October delivery
<LCOc1> gained $1.22 to $76.83 a barrel. The September contract
expired at $74.85 on Monday.
From 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 global recovery and of 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 <> was 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.
Both Ireland and Spain attracted strong demand in debt
auctions on Tuesday, easing some tensions surrounding the
financial health of euro zone countries struggling with high
debt and low growth. []
"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 Jane Baird)
