* Oil, equities pressured by economic jitters
* ECRI U.S. economic growth index drops to 3-wk low
* Coming up: CFTC positions data, 3:30 p.m. EDT Friday
(Recasts, updates prices, market activity, new byline,
changes dateline from previous LONDON)
By Robert Gibbons
NEW YORK, Aug 20 (Reuters) - Oil prices tumbled to a
six-week low on Friday, headed for a second straight losing
week as dismal economic data and bulging U.S. oil inventories
kept investors worried about the economy and the outlook for
oil demand.
Concerns about the global economy also revived risk
aversion, strengthening the dollar and pressuring the euro.
[]
A stronger dollar can pressure oil prices as money shifts
out of more risky commodities and also because countries with
other currencies must pay more for dollar-denominated oil.
U.S. crude for September <CLc1> fell $1.13 to $73.30 a
barrel by 12:02 p.m. EDT (1602 GMT) on contract expiry day. It
fell as low as $73.19 intraday, the lowest since July 7.
The more actively traded U.S. October contract <CLc2> fell
$1.14 to $73.63 a barrel, while the front-month October Brent
<LCOc1> contract fell $1.13 to $74.17.
A measure of future U.S. economic growth fell to a 3-week
low in the latest week, the Economic Cycle Research Institute
said on Friday. []
U.S. stocks fell on Friday, tracking global equity markets
lower as fears persisted that the economic recovery has hit a
wall. []
Oil prices were pressured this week by Wednesday's U.S.
Energy Information Administration report that showed combined
U.S. crude and refined products rose to 1.130 billion barrels
in the week to Aug. 13 -- the highest level since the
government began tracking weekly levels in 1990. []
More disappointing U.S. economic data arrived on Thursday
in reports that initial jobless claims rose to a nine-month
high last week and mid-Atlantic manufacturing shrank in
August.
"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.
On Friday, oil prices received negligible support from
potential tropical weather threats brewing in the Atlantic.
A low pressure system southwest of the Cape Verde Islands
strengthened overnight and has a medium, 40 percent, chance of
developing into a tropical depression over the next 48 hours,
the U.S. National Hurricane Center said Friday. The next named
storm will be called Danielle. []
Oil prices got no lift from a report from industry group
American Petroleum Institute that U.S. demand for crude oil and
petroleum products climbed 3.8 percent in July from a year ago,
though the report showed gasoline demand was virtually
unchanged. []
RANGEBOUND TRADE
Oil prices have fallen by more than 10 percent from the
early August high of around $82.97 a barrel and are now back in
the $70-$80 range they have been largely confined in since last
October.
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For a graphic on the technical outlook, see:
http://link.reuters.com/hes36n
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Analysts at the Schork Group expected increased volatility
on Friday as the U.S. September contract approached expiration,
and pegged support for the next front-month October contract at
$72.34 and resistance at $77.20. []
(Additional reporting by Emma Farge in London and Alejandro
Barbajosa in Singapore)
