* Oil rises more than $1 to session high of $75.86
* Coming Up: U.S. EIA oil inventories, demand; 1500 GMT
(Adds fresh comment, updates prices)
By Marie-Louise Gumuchian
LONDON, Sept 9 (Reuters) - Oil rose above $75 a barrel on
Thursday, hitting a three-week high, as it drew strength from an
initial report of falling U.S. inventories and then from
stronger-than-expected U.S. job and trade data.
U.S. claims for unemployment benefits fell more than
expected last week to a two-month low, while the trade deficit
narrowed sharply in July, providing some evidence of economic
recovery in the world's biggest fuel user. []
U.S. crude for October <CLc1> gained 93 cents to $75.16 a
barrel at 1411 GMT, having earlier hit $75.86, its highest level
since Aug. 19. Brent crude <LCOc1> gained 38 cents to $78.55.
"The jobless numbers have been a positive for the oil market
sentiment, that's for sure," said Amrita Sen at Barclays
Capital.
Oil prices had firmed already after industry figures late on
Wednesday showed an unexpected decline in U.S. fuel stockpiles
from record levels, but government statistics due for release
later on Thursday could contradict that. []
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 follow at 1500 GMT from
the U.S. Department of Energy's Energy Information
Administration (EIA). The API and EIA reports were delayed by
one day because of the U.S. Labor Day holiday on Monday.
Oversupply and weak demand have been largely a function of a
limp economic recovery, and nearly all markets have focused on
the same 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.
U.S. equities rose at the open following the data. European
shares were also higher. <.SPX> [] <> [].The dollar
was down 0.22 percent against a basket of currencies <.DXY>.
WTI DISLOCATION
U.S. fuel stockpiles hit their highest in the week to Aug.
27 since weekly records began in 1990. 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
around $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 was 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)
