* Dollar under pressure as Obama tours China
* Japan GDP jumps, but likely to slow next year
* Swelling U.S. oil stocks highlight demand weakness
By Fayen Wong
PERTH, Nov 16 (Reuters) - Oil prices clawed back some of
last week's 1.4 percent losses on Monday to rise above $77 a
barrel, supported by a weaker U.S. dollar and improved risk
appetite.
Positive data from Japan, the world's third-largest energy
consumer, whose economy expanded 1.2 percent in the third
quarter from the previous three months, also lent support to
oil prices.
U.S crude futures for December delivery <CLc1> rose 70
cents to $77.05 a barrel by 0315 GMT. The contract touched a
one-month low and settled 59 cents lower at $76.35 a barrel on
Friday.
London Brent crude <LCOc1> gained 59 cents to $76.90.
"Oil prices are up mostly because of U.S. dollar weakness.
The market is expecting the dollar to fall lower this week,"
said Jonathan Kornafel, Asia director at Hudson Capital Energy
in Singapore.
The U.S. dollar drifted lower in Asia on Monday, falling
0.3 percent against a basket of currencies <.DXY>, as it heads
into a week that is likely to see increased rhetoric on
currencies from both China and visiting U.S. President Barack
Obama. []
A weaker dollar typically supports oil because
dollar-priced commodities become cheaper for buyers using other
currencies.
With the vast majority of corporate results already
reported, market watchers are casting around for the next
catalyst to set direction for the dollar, stocks and
commodities. That will put this week's round of economic data
in the spotlight, including U.S. retail sales, the Consumer
Price Index and housing starts.
Hopes of a revival in energy demand from Japan also lifted
prices.
Japan's economy grew at the fastest pace in more than two
years in the third quarter, as stimulus lifted consumer
spending and capital spending bottomed out. []
However, with growth in the world's No. 2 economy largely
fuelled by the continued effects of stimulus spending by
governments around the world, some analysts warned the recovery
may lose momentum in coming quarters due to weak domestic
demand.
After having fallen about 54 percent in 2008, oil prices
have rebounded nearly 73 percent so far this year, helped by a
weaker dollar and rallying equities markets amid signs of
stronger global growth.
Analysts said upside gains to oil prices could be limited,
however, with U.S. data pointing to a choppy recovery, while
bulging fuel inventories also reflected sluggish energy demand.
Crude prices fell late last week, after the U.S. Energy
Information Administration reported crude and product stocks in
the world's largest energy consumer rose more than expected
last week. []
Separately, money managers cut their net long crude oil
positions on the New York Mercantile Exchange in the six days
through Nov. 9, the Commodity Futures Trading Commission said.
[]
(Reporting by Fayen Wong; Editing by Clarence Fernandez)
