* U.S. crude oil inventories up 2 million barrels
* U.S. jobless claims fall more than expected
* For a technical view, see here: []
(Adds U.S. data, updates prices)
By Emma Farge
LONDON, June 24 (Reuters) - Oil prices fell on Thursday for
a third day to around $76 a barrel after a jump in U.S. crude
oil inventories outweighed the U.S. Federal Reserve's decision
to keep interest rates near zero.
Prices pared initial losses after a batch of broadly
positive macroeconomic data on the U.S. and European economies
lifted hopes for fuel demand growth.
U.S. crude for August <CLc1> fell 43 cents to $75.92 a
barrel by 1343 GMT after earlier sinking to $75.55.
Prices bounced back after data showed the number of U.S.
workers filling new applications for unemployment insurance fell
more than expected and euro zone industrial orders rose at their
fastest pace in 10 years. [] []
ICE Brent futures <LCOc1> were down 32 cents at $75.95.
"Monetary policy by the Fed and a somewhat weaker dollar are
not fully balancing out the weakness in oil demand in the United
States," said Eugen Weinberg of Commerzbank, citing high U.S.
crude oil stocks.
Low interest rates are generally supportive for oil prices
as cheaper borrowing costs tend to stoke oil consumption.
But the rate decision was also accompanied by bearish
remarks that the U.S. economic recovery is faltering, affecting
demand for fuel.
This was born out in the oil market by data on Wednesday
showing U.S. crude oil stockpiles rose by an unexpected 2
million barrels, the Energy Information Administration said.
The hike in stocks came despite the Obama administration's
ban on deepwater oil drilling in the Gulf of Mexico after the
crude oil spill from BP's <BP.L> <BP.N> well in April.
A U.S. judge ruled against the ban on Tuesday in a decision
being appealed by the government. []
[]
SUPPORT CUSHION
In a further sign that stocks will remain comfortable, the
International Energy Agency said on Wednesday that global oil
supplies will match expected growth of 1.2 million barrels in
daily oil consumption through to 2015.
But while sentiment was weak, some analysts expect $75 a
barrel to be a support cushion.
"The important psychological level is $75 -- if it drops
below there there could be further selling pressure," said
Weinberg.
Still, oil prices are over $10 above the trough of below $65
a barrel hit a month ago when the spreading European debt crisis
raised concerns about the future of regional fuel demand.
The market is expected to closely watch a tropical system to
the south of Cuba that has a 30 percent chance of becoming a
tropical cyclone over the next two days, according to the U.S.
National Hurricane Center.
Storms could complicate the clean-up effort and affect oil
production in the Gulf of Mexico.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^See here for a graphic showing U.S. Gulf offshore crude
output:
http://graphics.thomsonreuters.com/10/US_OFSHRD0610.gif
Click here for a technical graph:
http://graphics.thomsonreuters.com/gfx/WT_20102406082312.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Alejandro Barbajosa in Singapore;
editing by Keiron Henderson)
