* Technicals: Brent, WTI outlooks diverge []
* Coming Up: U.S. EIA oil inventories, demand; 1500 GMT
(Adds U.S. jobless, updates prices, tropical storm Igor)
By Marie-Louise Gumuchian
LONDON, Sept 9 (Reuters) - Oil rose above $75 a barrel on
Thursday, drawing strength from an initial report of falling
U.S. inventories and better than expected U.S. jobless claims
data.
Industry data late on Wednesday surprised the market with
news of a decline in U.S. fuel stockpiles from record levels,
but government statistics due for release on Thursday could
contradict that.
Oil extended gains following data showing U.S. claims for
unemployment benefits fell more than expected last week to their
lowest level in two months, a hopeful sign for the troubled
labour market. []
U.S. crude for October <CLc1> added 50 cents to $75.17 a
barrel at 1235 GMT, approaching this week's high of $75.39 from
Wednesday. Brent crude <LCOc1> gained 5 cents to $78.22.
"There's a big drawdown in crude; (it) seems to be having a
mildly supportive effect," said Tony Machacek, a broker at Bache
Commodities.
Analysts had forecast U.S. crude stockpiles rose for the
third consecutive time last week as refinery utilization fell,
an expanded Reuters poll showed on Wednesday. []
However, the American Petroleum Institute reported that U.S.
crude stocks fell 7.3 million barrels last week, versus
analysts' expectations for a 900,000-barrel gain.
Government statistics on inventories will follow at 1500 GMT
from the U.S. Department of Energy's (DOE) Energy Information
Administration. The API and EIA reports were delayed by one day
because of the U.S. Labor Day holiday on Monday.
"If the API drop is confirmed also by the DOE numbers, this
would have a positive impact on sentiment for the rest of week,"
said Stefan Graber, a commodities analyst with Credit Suisse in
Singapore.
Oversupply and weak demand have been largely a function of a
limp economic recovery, and nearly all markets have focused on
similar data, seeking evidence of growth.
In its latest assessment, the Organisation for Economic
Co-operation and Development said the economy was slowing more
than expected and that monetary stimulus should be extended or
stepped up if the slowdown persisted. []
The oil market has spent much of the year in lockstep with
equities and negatively correlated to the U.S. dollar.
The all-country world index <.MIWD00000PUS> was up 0.44
percent, while the dollar was down 0.12 percent against a basket
of currencies <.DXY>.
WTI DISLOCATION
U.S. fuel stockpiles hit their highest since weekly records
began in 1990 in the week to Aug. 27. The huge volumes of
inventory in Cushing, Oklahoma, the delivery point for the main
U.S. benchmark, have deeply depressed U.S. crude futures
relative to the European benchmark Brent.
That has taken the spread between the two contracts to more
than $3, close to its widest since mid-May. <CL-LCO1=R>
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For a graphic on Brent's premium over WTI:
http://graphics.thomsonreuters.com/AS/0810/ABE_20100809105935.jpg
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The gap between U.S. and Brent futures could narrow if U.S.
oil draws strength from any hurricane disruption to industry
infrastructure.
Tropical Storm Igor has barely maintained its status and is
hardly moving, but is still forecast to strengthen into a
hurricane in three days time, the U.S. National Hurricane Center
said. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Jane Baird and Keiron Henderson)
