* Stronger dollar halts two-day rise in crude
* Market eyes colder weather forecasts in eastern U.S.
* U.S. crude and distillate stocks post large draws
(Adds details and updates prices, changes dateline from
LONDON)
NEW YORK, Dec 17 (Reuters) - Oil fell to near 1 percent to
on Thursday as a rise in U.S. jobless claims stirred concerns
about a rebound in the economy that could boost fuel demand.
The number of U.S. workers filing new applications for
jobless insurance unexpectedly rose last week, but a gauge of
future economic activity increased for the eighth month in a
row, pointing to a slow economic recovery where employment
looms as the dominant concern. []
U.S. crude for January delivery <CLc1> traded down 52 cents
to $72.14 a barrel by 1:48 p.m. EST (1848 GMT). ICE Brent
futures <LCOc1> for February delivery shed $1.14 to $73.15 a
barrel.
U.S. stock markets [] fell as investors sought safer
havens, with the dollar [] hitting a 3-1/2-month high
against the euro.
"With the dollar rebound, equity prices falling off and the
jobless claims worse than expected, some of the negative
factors in the market reemerged," said Gene McGillian, analyst
at Tradition Energy in Stamford, Connecticut.
Energy markets have looked to wider economic data this year
for signs of a rebound in the economy that could give a lift to
oil demand.
Oil's losses came despite a report from the U.S. Energy
Information Administration released on Wednesday, which showed
a 3.7 million barrel draw in U.S. crude inventories last week,
against expectations of a 1.8 million barrels decline.
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Relationship between U.S. crude stocks and the oil price:
http://link.reuters.com/dyd37g
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Distillate stocks, which include diesel and heating oil,
fell by 2.9 million barrels, far exceeding forecasts for a
600,000-barrel drop. []
A further drawdown in distillate stockpiles could be on the
cards, after a 10-day National Weather Service forecast this
week called for unseasonably cold weather in most of the
eastern United States, the world's biggest regional consumer of
heating oil.
"If demand starts coming through, we could have some little
spikes. When you have to crank up refinery runs you should see
more crude draws and the distillate overhang coming down," said
Montefusco.
On the supply front, the Organization of the Petroleum
Exporting Countries (OPEC), which pumps about one in three
barrels of crude consumed around the world, is widely expected
to keep output unchanged when it meets in Angola to discuss
production policy on Dec. 22. For a Reuters poll click
[]
Suncor Energy Inc <SU.TO> said a fire on Tuesday had
affected operations at one of its oil sands upgraders, in
Canada's Alberta Province.
The upgrader may be forced to cut output by up to 150,000
barrels a day, or half of its capacity, while it is repaired
for two to four weeks, the company said. Oil traders said the
outage was having little effect on oil futures prices since
North American crude stocks remain well above historical
average levels. []
Oil prices are now more than double the low of $32.40 a
barrel touched in December 2008.
(Additional reporting by Jennifer Tan; editing by Marguerita
Choy)
