* Dollar strength helps send U.S. crude lower
* May U.S. crude options, Brent crude contract to expire
* Chinese Q1 GDP jumps 11.9 percent
(Recasts, updates prices, market activity; new byline, dateline,
previously LONODN)
By Robert Gibbons
NEW YORK, April 15 (Reuters) - U.S. oil prices edged lower in choppy
trading on Thursday as a stronger dollar and mixed economic data pulled
crude back from earlier gains that followed robust economic data from
China.
"We are looking at the data from China and this is very supportive for
the market," said Christophe Barret, oil analyst at Credit Agricole
Corporate and Investment Bank. "But I think the growth was anticipated and
was already in the prices."
In London, Brent crude futures remained up sharply ahead of the
expiration on Thursday of the front-month May contract, even as the
approaching expiration of May crude oil options helped keep U.S. oil prices
curbed, sources said.
Front-month U.S. crude <CLc1> for May delivery was down 26 cents at
$85.58 a barrel at 1:17 p.m. EDT (1717 GMT), after ending 2 percent higher
the previous day. ICE Brent crude for May rose $1.06 to $87.21 a barrel on
the day of its expiration.
Brent is trading at a premium to U.S. benchmark West Texas Intermediate
crude a fourth consecutive day due partly to the approaching Brent contract
expiration and traders also cited rising stockpiles at the Cushing,
Oklahoma, delivery point for WTI, among other factors. []
The euro was on track for its largest one-day fall in three weeks
against the dollar as concern about how Greece will manage its debt
resurfaced and helped offset the negative impact earlier of strong Chinese
data on the greenback. []
A stronger dollar can pressure oil as it raises commodity prices for
buyers using other currencies.
Surging economic growth in China could prompt a revaluation of the
yuan, which may boost oil demand as China's buying power of
dollar-denominated commodities increases. []
An unexpected 24,000 jump in the number of U.S. workers filing new
jobless benefit claims tempered sentiment, but an expansion in New York
state manufacturing to a six-month high kept optimism about the economy
bolstered. []
SURPRISE DROP
Oil prices rose more than 2 percent on Wednesday, ending a five-day
losing streak after U.S. government data showed a surprise 2.2
million-barrel drop in U.S. crude stocks.
But the report also showed a larger-than-expected 1.1 million barrel
rise in distillate stocks including diesel, raising questions about the
pace of the U.S. exit from recession. []
"There was a knee-jerk reaction to the EIA report and there may be a
bit of a correction today. The data may not be as bullish as was first
thought," said Antoine Halff, first vice-president of research at Newedge
Group in New York.
On a technical basis, prices may be due for a small correction on
Thursday but upward momentum is set to stay intact. For a technical outlook
for crude, see[]
OPEC has signaled it is eyeing oil's recent jump to 18-month highs.
Kuwait's oil minister said Thursday that OPEC would make a decision on an
output boost to calm oil prices if prices moved above $100 a barrel.
[]
On Tuesday, OPEC delegates said a price above $90-$95 would prompt the
group to consider raising output. []
But Venezuela's Oil Minister Rafael Ramirez said on Thursday that OPEC
will not increase output to bring down prices as inventories are high
because demand is low and any additional output would end up in stockpiles
and not go to consumers. []
U.S. crude oil futures settled at $86.86 on April 6, the highest
settlement since the $88.95 close on Oct. 8, 2008. The April 6 intraday
high of $87.09 was the strongest intraday peak since $89.82 was struck on
Oct. 9, 2008.
(Additional reporting by Gene Ramos in New York, Emma Farge in London and
Alejandro Barbajosa in Singapore; Editing by David Gregorio)
