* US Q2 GDP expands at 2.4 pct annual rate, slows from Q1
* Midwest business activity data improves, supports oil
* Coming up: U.S. July non-farm payrolls on Aug 6
(Recasts, updates with settlement prices)
By Robert Gibbons
NEW YORK, July 30 (Reuters) - U.S. crude oil futures
turned positive to end the month higher on Friday, shrugging
off earlier concerns about the pace of economic growth amid
mixed data and lifted by a late rally in refined products
futures as August contracts expired.
Front-month crude futures prices ended July up $3.29 or
4.35 percent from the end of June, though for the week the
ended six cents or 0.07 percent lower.
U.S. crude for September <CLc1> delivery rose 59 cents to
settle at $78.95 a barrel, trading from $76.83 to $79.05.
ICE Brent also rose 59 cents to settle at $78.18 a barrel,
having traded from $76.20 to $78.31.
Crude futures slumped early on Friday after data showed
economic growth in the United States slowed in the second
quarter. []
Gross domestic product expanded at a 2.4 percent annual
rate, just under expectations, after a revised 3.7 percent
growth pace in the first quarter.
U.S. consumer sentiment slumped in July to the lowest level
since November also provided pressure on oil, although there
was a slim improvement in late July from early July, according
to the Thomson Reuters/University of Michigan's Surveys of
Consumers.
Also supportive was a report of positive business activity
in the U.S. Midwest [] and another showing a
leading indicator index that was stronger []
helped pull oil prices off their lows.
"While today's seemingly disappointing GDP report slapped
the market down toward yesterday's lows early..., the complex
was again able to rebound ... with the help of improved
consumer confidence figures as well as an optimistic report
regarding Chicago business activity," said Jim Ritterbusch,
president at Ritterbusch & Associates in Galena, Illinois.
Sources said end-of-month trading was also a factor in the
volatility and that crude prices also gained momentum after an
early slump failed to move below the 50-day moving average and
support around $76.50 a barrel.
Signs of tepid economic recovery and oil demand growth,
along with the rising oil inventories have helped keep oil
prices in check as they recovered from a low under $65 in late
May.
U.S. stock indexes ended mixed, but the S&P 500 index,
closely watched by oil traders, closed higher as stocks wrapped
up their best month in a year as strong corporate earnings
results offset the impact of poor economic data.
[]
While the euro <EUR=> weakened against the dollar, the
greenback hit multi-month lows against the Japanese yen and the
dollar index <.DXY> also weakened.
A weak dollar often supports prices for dollar-denominated
oil, making it cheaper for buyers using other currencies and
lowering the value of the dollars producers receive.
TROPICAL STORM SEASON
Also supportive to oil were two tropical weather systems in
the Atlantic Basin, still being given low chances of
strengthening into tropical depressions over the next 48 hours
by the U.S. National Hurricane Center. []
"There is always a reluctance to be too short and then come
back after the weekend and there is a real storm threat," said
Phil Flynn, analyst at PFGBest Research in Chicago.
Next week, along with the key U.S. July non-farm payrolls
report on Friday, traders will be eyeing U.S. oil inventory
reports for impact of the supply disruptions caused by Tropical
Storm Bonnie.
Wednesday's report from the U.S. Energy Information
Administration showed crude stocks soared unexpectedly last
week. []
(Additional reporting by Selam Gebrekidan, Alex Lawler and
Alejandro Barbajosa; Editing by Sofina Mirza-Reid)
