* Oil falls towards $72 on risk aversion
* Asian shares retreat, dollar gains respite
* Positive economic data to offer support
(Adds Asian shares performance, analyst comment, updates
prices)
By Fayen Wong
PERTH, Sept 18 (Reuters) - Oil prices fell towards $72 a
barrel on Friday, as a fall in Asian equities markets weighed
on sentiment and encouraged investors to take profit.
Still, crude prices stayed on track for a gain of about 4
percent this week, helped by a U.S. government report that
showed a larger-than-expected drawdown in crude stocks and
rallying stock markets, supported by a string of positive
economic data.
U.S. crude for October delivery <CLc1> fell 40 cents to
$72.07 a barrel by 0635 GMT, after settling down 4 cents on
Thursday, when prices slipped as Wall Street closed down after
a three-day run-up. on concern recent gains were overextended.
[] []
London Brent crude <LCOc1> fell 28 cents to $71.27.
"The weaker stock market is causing some risk aversion and
that's pressuring oil and other commodities," said Michelle
Kwek, an analyst at Informal Global Markets in Singapore.
"Some traders could also be unwinding their positions in
the market ahead of the long holiday in Japan."
Japanese markets will be closed from Monday through
Wednesday next week.
Crude is up nearly 62 percent this year, but is still about
51 percent off its July 2008 record of more than $147.
Asian stocks retreated from 13-month highs on Friday and
commodity prices dipped after data painting a conflicting
picture of the strength of the U.S. recovery stopped investors
from extending this week's rally. []
Increased risk aversion also helped buoy the U.S. dollar,
with the dollar index <.DXY> inching up 0.28 percent to 76.398
points, putting some downward pressure to oil prices.
Oil has tracked equities markets closely in recent months
as dealers look to stocks as a leading indicator of an economic
recovery that could boost ailing energy demand.
Some analysts said oil prices could move higher in coming
weeks as some recent positive economic data supported hopes a
global economic recovery is underway and energy demand would
soon recover.
"Oil stocks remain at an elevated level, but improving
demand amid continued supply tightness should accelerate the
pace of erosion of the inventory overhang, lending support to
prices," Barclays Capital said in a report led by analyst Gayle
Berry.
Economic data on Thursday showed U.S. weekly jobless
benefit claims fell unexpectedly last week while U.S. housing
starts rose to their highest level since November, providing
further encouraging signs of an economic recovery.
[]
Separately, OPEC seaborne oil exports, excluding Angola and
Ecuador, will rise 200,000 barrels per day (bpd) in the four
weeks to Oct. 3, an analyst who tracks future shipments said on
Thursday. []
(Reporting by Fayen Wong; Editing by Clarence Fernandez)
