* Corporate results, economic data supports equities, oil
* Dollar slips after Alcoa beats expectations
* U.S. gasoline stocks rose at three times expected pace
(Updates throughout)
By Joe Brock
LONDON, Oct 8 (Reuters) - Oil rose above $70 a barrel on
Thursday, retrieving some of the previous session's losses,
supported by signs of global economic recovery and a weaker U.S.
dollar.
Oil dropped almost 2 percent on Wednesday after U.S.
government data showed a larger-than-expected build in gasoline
and distillate stocks last week, increasing doubts over the pace
of fuel demand recovery in the world's largest energy consumer.
[]
U.S. crude for November delivery <CLc1> rose 62 cents to
$70.19 a barrel by 0839 GMT. The contract closed $1.31 lower at
$69.57 a barrel on Wednesday.
London Brent crude <LCOc1> gained 62 cents to $67.82.
"A weaker dollar is going to continue to help oil and the
latest corporate results are supporting a lot of markets today,"
said CMC Markets analyst James Hughes.
Hughes urged caution over reading too much into positive
headline numbers during the corporate earnings season as figures
can be enhanced by expenditure reductions rather than increased
revenue.
"I'm still a little bit sceptical about these results but it
looks like investors are going to look through that and are
going to accept cost cutting earnings for now."
Alcoa Inc <AA.N> posted a surprise profit on Wednesday,
thanks to cost cutting and higher aluminium prices after three
consecutive quarterly losses, sending its stock 6 percent
higher. []
Australian employment numbers surged past all expectations
in September, adding to economic recovery hopes. The jobless
rate dropped in what might be a turning point months earlier
than anyone had thought, pushing stock markets higher and piling
pressure on the U.S. dollar. [][]
A weaker dollar supports oil because it makes commodities
priced in the greenback cheaper for those holding alternative
currencies. []
Still, some analysts doubt whether oil will rise beyond the
$75 mark, as the market remains well supplied and the global
economic recovery, along with energy demand, remains fragile.
"The road to recovery is unlikely to be as smooth as some
expect and will come with a few bumps along the way. The hard
data (factory orders, capital goods orders) have disappointed
relative to the direction suggested by the new orders'
components in the ISM manufacturing surveys," Harry
Tchilinguirian, an oil analyst at BNP Paribas, said.
The Energy Information Administration reported gasoline
stocks leapt 2.9 million barrels last week, nearly three times
the build that analysts had expected.
Distillate stocks -- which include diesel and heating oil --
rose by 700,000 barrels, more than double the forecast
300,000-barrel build. []
Investors will keep their eyes peeled for economic data due
later in the United States on Thursday, including weekly jobless
claims, wholesale inventories for August and chain store sales
for September.
Expectations of prolonged peace and increased crude
production in Nigeria took a backward step after its main
militant group said it will resume attacks against Africa's
biggest oil and gas industry once its three-month old ceasefire
expires at the end of next week. []
The Nigerian minister of state for petroleum told Reuters on
Wednesday oil production has risen to 1.6 million barrels per
day due to the decline in violence. []
(Editing by Anthony Barker)
