* Tropical Storm Danielle seen drifting towards Bermuda
* Technicals show rangebound $73-$75 price: []
* Coming Up: Eurozone consumer confidence Aug; 1400 GMT
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, Aug 23 (Reuters) - Oil rebounded as much as 0.7
percent to top $74 on Monday on a weaker dollar, but prices
stayed close to last week's six-week lows on a combination of
lacklustre economic indicators, rising risk aversion and a lack
of hurricane activity in the Gulf of Mexico.
U.S. crude for delivery in October <CLc1>, the front-month
contract from Monday after September went off the board on
Friday, climbed as much as 48 cents to $74.30 a barrel and was
up 20 cents at $74.02 by 0712 GMT, while October ICE Brent
<LCOc1> gained 21 cents to $74.47.
Front-month crude ended last week at the lowest level since
early July, after prices touched a Friday intraday low of
$73.19. Prices have fallen more than 10 percent from an Aug. 4
high of $82.97. For now, traders and analysts say, a rally may
only be triggered by hurricane-related disruptions to output or
refining.
"When we enter the hurricane season the market builds up a
premium," said Jonathan Barratt, managing director at Commodity
Broking Services in Sydney. "The lack of weather is providing
us with a little bit of an increase in supply, as inventories
continue to build."
Tropical Storm Danielle formed over the mid-Atlantic on
Sunday and could become a hurricane by Tuesday night, the U.S.
National Hurricane Center said, but it was headed for Bermuda,
posing no threat to oil and gas infrastructure in the
hydrocarbon-rich Gulf of Mexico. []
HURRICANE SEASON SPUTTERING
Although forecasts are for the Atlantic hurricane season to
be the most active in five years, no threatening storms were in
sight as the period of peak activity between mid-August and
mid-October kicked off. Only four storms have so far gained
enough intensity to be named, versus 11 at this stage in the
destructive 2005 season.
Hurricane Katrina, which in 2005 became the worst storm for
the U.S. offshore oil industry, devastated platforms, pipelines
and rigs as it cut across the Gulf in the last week of August.
Investors' interest in oil also diminished last week. Money
managers cut net long crude oil positions on the New York
Mercantile Exchange to less than 109,000 in the week through
Aug. 17 from almost 129,000 a week earlier, the Commodity
Futures Trading Commission said on Friday. []
Oil prices this year have traded in a $64.24-$87.15 range,
as recovering energy demand has been insufficient to drain
ample supplies. U.S. total petroleum stockpiles climbed to a
record since weekly records began in 1990 in the week ended Aug
13, according to government and industry data.
GROWTH CONCERNS
Oil "is going to try to find a bit of a base here," Barratt
said. "The market has to factor in some sort of stimulus
packages. If governments started supporting the economy, they
will have to continue."
Last week's economic reports included data showing U.S.
jobless claims hit a nine-month high and U.S regional
manufacturing contracted for the first time in a year, reviving
fears of a double-dip recession in the world's largest economy.
Adding to economic jitters, a measure of future U.S.
economic growth fell to a three-week low, the Economic Cycle
Research Institute said on Friday. U.S. gross domestic product
for the second quarter will be published Friday this week.
[]
Lingering fears about economic growth drove world stocks to
a one-month low on Friday, while boosting the safe-haven appeal
of U.S. government bonds and the U.S. dollar. The greenback
weakened 0.2 percent against a basket of currencies on Monday,
while Japan's Nikkei average slipped to a nine-month closing
low. []
Iran unveiled a prototype long-range unmanned bomber on
Sunday, the latest in a stream of announcements of new
Iranian-made military hardware as tension mounts over its
nuclear programme. []
(Editing by Clarence Fernandez)
