* Hurricane Center lowers probability of storm formation
* Coming Up: US existing home sales for June; 1400 GMT
* For a technical view, click: []
(Updates prices, adds details)
By David Turner and David Sheppard
LONDON, July 22 (Reuters) - Oil rose on Thursday after
better than expected euro zone manufacturing and services data,
but rising U.S. oil inventories and fears about the broader U.S.
economy, the world's largest, kept prices in check.
The euro zone's private sector surged this month, according
to a survey released on Thursday, reassuring markets spooked by
U.S. Federal Reserve Chairman Ben Bernanke describing the
prospects for the United States as "unusually uncertain".
[] []
Germany, the EU's biggest economy, saw its services sector
grow at its fastest pace in almost three years, and its
manufacturing sector grew at a pace not far off April's 14-year
survey high. []
"I think that this is a very good sign that we are not
heading for a double-dip recession," Dekabank analyst Sebastian
Wanke told Reuters Insider.
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Reuters Insider interview with Sebastian Wanke:
http://link.reuters.com/ruk78m
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U.S. crude for September <CLc1> rose 34 cents to $76.90 by
1201 GMT, while ICE Brent <LCOc1> rose 22 cents to $75.59.
European shares <> [] rose ahead of the results of
the European Union's publication of euro-zone bank stress tests
from 1500 GMT on Friday. They are expected to show generally
positive results for Greece, Italy and Ireland and a few
failures in Portugal and Spain.
"The crude oil market is waiting to go higher to $80, $85
and $90, but it still needs time," said Ken Hasegawa, a
commodity derivatives manager at brokerage Newedge in Japan.
"Everyone understands that the (U.S.) inventory level is
relatively high. That is one of the bearish factors that may be
capping it down."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^For a 24-hour U.S. oil technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102207085756.jpg
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INVENTORIES RISE
U.S. crude stockpiles rose 360,000 barrels in the week to
July 16, government statistics from the Energy Information
Administration showed on Wednesday, against a forecast for a
drop of 1.4 million barrels. []
Rising crude imports helped offset an increase in refinery
capacity utilization. Higher refinery use boosted gasoline
inventories by 1.1 million barrels, slightly more than a
forecast gain of 900,000 barrels.
Distillate stocks jumped by 3.9 million barrels, more than
double the expected rise.
Shell Oil Co <RDSa.L> began pulling nonessential workers
from eastern Gulf of Mexico oil and natural gas operations on
Wednesday due to the threat of a possible tropical storm that
may emerge by the weekend, the company said. []
But an updated forecast that cut the chances of a storm
developing dampened crude price rises.
The U.S. National Hurricane Center said on Thursday a
weather system hovering over the Bahamas, eastern Cuba and
Hispaniola had a 40 percent chance of becoming a tropical
cyclone in the next two days, down from as high as 70 percent on
Wednesday.
Storms in the region can follow a westward path towards the
oil-rich Gulf of Mexico.
"It is possible that some supply disruption due to a
hurricane would be a supportive factor," Hasegawa said.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Sue Thomas)
