* U.S. Q2 GDP rises 2.4 pct
* Concern about slowing growth weighs on oil, equities
* For a technical view, click: []
(Updates prices)
By Alex Lawler
CAPE TOWN, July 30 (Reuters) - Oil fell towards $77 a barrel
on Friday, extending an earlier drop, pressured by data showing
economic growth in top oil consumer the United States slowed in
the second quarter.
Gross domestic product expanded at a 2.4 percent annual
rate, the Commerce Department said, after a revised 3.7 percent
growth pace in the January-March quarter. Analysts expected
second quarter growth of 2.5 percent.
U.S. September crude <CLc1> shed $1.00 to $77.36 a barrel at
1347 GMT. ICE Brent <LCOc1> fell 87 cents to $76.72.
"Oil is coming down further after the data was published,
probably on the fear out there of a double-dip," said Daniel
Briesemann, analyst at Commerzbank in Frankfurt.
The GDP report also pressured European equities and boosted
gold. Wall Street was lower in early trade and the dollar pared
an earlier gain against a basket of currencies.
Oil was down earlier in the session as some investors
anticipated a weak GDP report, and because of data earlier this
week showing rising U.S. inventories.
A U.S. government report on Wednesday showed crude
inventories jumped the most in almost two years last week, by
more than 7 million barrels.
Industry group the American Petroleum Institute also
reported a rise in stockpiles. [] []
RECESSION FEARS
The slowdown in the U.S. economic recovery was also flagged
by a stream of weak economic data in the past couple of months.
Still, U.S. crude on Thursday climbed almost 1.8 percent,
the first gain of the week despite falling equities, boosted by
a weaker dollar, which makes dollar-denominated commodities
cheaper for other currency holders.
Oil has traded in a range between $70 and $80 for almost two
months. Prices are unlikely to move above $80 a barrel unless
inventories fall, said Mark Pervan, a senior commodities analyst
at ANZ in Melbourne.
Industrial output in Japan, the world's third-largest oil
user, unexpectedly fell in June and manufacturers expect further
declines in coming months, boding ill for the fragile economic
recovery. [] []
Members of the Organization of the Petroleum Exporting
Countries have said they prefer oil to remain around $70 to $80
a barrel, a level they say encourages investment to sustain and
increase production capacity and does not put the global
economic recovery at risk.
With prices staying within that range, OPEC production has
been climbing steadily and has risen further in July, a Reuters
survey showed on Thursday. []
(Additional reporting by Alejandro Barbajosa; editing by James
Jukwey)
