* Weak dollar, strong euro, euro zone data lift oil
* U.S. equities fall, tempering oil's rise
* Coming up: US Q2 GDP advanced, Fri, 8:30 a.m. EDT
(Recasts and updates prices.)
By Joshua Schneyer
NEW YORK, July 29 (Reuters) - Oil prices rose on Thursday
as the dollar weakened to a 12-week low against the euro,
boosting demand for oil priced in dollars, and after European
data showed eurozone economic sentiment has improved.
Oil prices rose in spite of a volatile day in U.S. stock
markets, in which equities gained early, then dipped in
afternoon trade before closing slightly higher. []
U.S. crude <CLc1> rose for the first time in a week,
gaining $1.37 a barrel to settle at $78.36. ICE Brent <LCOU0>
rose $1.53 to $77.59 a barrel.
"Today's move seems mostly due to a weaker dollar," said
Summit Energy analyst Matt Smith. "It's also a technical move,
since oil has been bouncing around in the $76 to $80 range, and
found support near the bottom of the range."
Oil retreated from a session high near $79, after U.S.
equities markets dipped in afternoon trade.
The euro <EUR=> hit a 12-week high, lifted by data showing
euro zone economic sentiment jumped to a 28-month high and
German unemployment declined for a 13th month. []
[]
A weaker dollar can boost demand for oil by making it
cheaper for holders of foreign currencies like the euro.
Also supportive was news that U.S. initial jobless claims
fell in the week to July 24. []
Oil product stocks held in the Amsterdam-Rotterdam-Antwerp
storage hub fell across the board in the week ending Thursday
[].
Consultancy Oil Movements said seaborne oil exports by
OPEC, excluding Angola and Ecuador, will fall by 370,000
barrels per day in the four weeks to Aug. 14, adding another
bullish element. []
The data helped to offset bearish sentiment after
Wednesday's U.S. Energy Information Administration inventory
report said U.S. commercial crude oil stocks unexpectedly rose
7.31 million barrels last week. []
FOCUS ON 200-DAY MOVING AVERAGE
Oil has been trading in the $70-$80 range for nearly two
months. Crude has come close to breaking through $80, but has
often fallen sharply when it fails to breach the range.
On Tuesday, for instance, oil ended 2 percent lower after
reaching an 11-week high of $79.69 in intraday trade. (Graphic:
http://link.reuters.com/xat99m )
Signs of tepid economic recovery and oil demand, along with
hefty inventories, have helped keep prices in check.
OPEC is meeting only half its promised cuts in oil supply
this month, a Reuters survey showed on Thursday. That was the
lowest rate of observance since the current targets were
adopted in December 2008. []
U.S. oil demand in May was revised down by 4.21 percent to
18.8 million bpd from an earlier estimate of 19.7 million bpd,
the U.S. EIA said on Thursday. []
(Additional reporting by Robert Gibbons in New York, David
Turner in London and Alejandro Barbajosa in Singapore; Editing
by David Gregorio)
