* Grim U.S. macroeconomic data caps prices
* U.S. oil stocks at more than 20 year high
* Coming up: U.S. ECRI weekly data at 1430 GMT
(Changes dateline to LONDON, previous SINGAPORE, recasts)
By Emma Farge
LONDON, Aug 20 (Reuters) - U.S. crude oil prices hovered
below $75 a barrel and near six-week lows after weak U.S.
economic data this week raised doubts about the top
oil-consuming nation's ability to work through the most ample
petroleum inventories in two decades.
U.S. crude prices for September <CLc1> rose 2 cents to
$74.45 a barrel by 0845 GMT on expiry day for the contract,
after falling the previous two sessions.
The more actively traded October contract dipped 5 cents to
$74.72 a barrel while the Brent contract for the same period was
up 20 cents at $75.50 by the same time.
Oil prices slid to a six-week low of $73.83 a barrel on
Wednesday after data from the Energy Information Administration
showed U.S. oil stocks rose to 1.130 billion barrels in the
previous week -- the highest level in at least 20 years. []
Since then, the already frail U.S. economic recovery
received fresh setbacks after jobless claims rose to a
nine-month high last week and mid-Atlantic manufacturing shrank
in August, alerting the market to the dangers of a stubborn
supply overhang.
"Even measured by the subpar nature of the macro numbers we
have been seeing in recent weeks, Thursday's batch of figures
were particularly disappointing....Excessive gains are getting
rolled back given the "slow-growth" track we seem to be on,"
said Edward Meir at MF Global in a research note.
He added that, for now, "hurricane-related jitters" are
setting an effective floor beneath oil prices but added that
this could could collapse if no storms enter the oil-rich U.S.
Gulf of Mexico before the end of the season.
The National Hurricane Center cut to 10 from 20 percent the
chance that a tropical wave in the western Caribbean Sea near
Central America would strengthen into a depression in the next
48 hours. []
RANGE-BOUND TRADE
Oil prices have fallen by 10 percent from early August highs
of around $83 a barrel and are now back in the $70-$80 a barrel
range where they have mostly traded since last October.
Some analysts flagged the risk of further losses if the
recovery prospects for the U.S. economy continue to worsen.
"The fundamentals of oil are not pretty...if the poor
macroeconomics force some deleveraging we have to be ready for
the risk of sharp downward corrections," said Olivier Jakob,
trading adviser at Petromatrix.
But for now, technical analysts predict that prices are
stuck within a miniature range between $73-$76 a barrel.
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For a graphic on the technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102008090216.jpg
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Traders will look to the Economic Cycle Research Institute
index due, a measure of future U.S. economic growth, for a fresh
perspective on the demand outlook.
Equities are also likely to give direction as oil price
gains are now showing an unusually high correlation with
equities, analysts said.
European stocks edged higher in early trade on Friday,
halting a sharp two-day retreat. []
(Additional reporting by Alejandro Barbajosa; editing by
Keiron Henderson)
