* Rebels exporting "minimum amount" of crude from Libya
* China Q1 inflation, GDP data on Friday in focus
* Technicals show Brent to zigzag up towards $124/bbl
* Coming Up: Weekly U.S. unemployment claims, 1230 GMT
(Adds China CPI, updates prices)
By Florence Tan
SINGAPORE, April 14 (Reuters) - Brent crude fell on
Thursday, trading below $123 a barrel on concern about the
impact of high prices on demand, although continued unrest in
the Middle East and a sharp fall in U.S. gasoline stocks limited
losses.
Brent crude for May <LCOc1> fell 38 cents to $122.50 a
barrel by 0500 GMT while U.S. May crude <CLc1> rose 5 cents to
$107.16 a barrel.
The world's largest economy continued to improve in the last
month, but firms were feeling the impact of higher costs of
energy and raw materials, the U.S. Federal Reserve said on
Wednesday. []
Rising U.S. gasoline prices have damaged confidence in the
country's future and forced Americans to adjust spending habits
and lifestyles, a Reuters/Ipsos poll found. []
Economic growth is fuelling the rise in commodity prices, in
turn leading to growing concern that high costs for raw
materials could stunt growth and with it fuel consumption.
The International Energy Agency and the International
Monetary Fund both warned this week expensive crude could erode
demand.
Analysts are divided on the impact so far.
Demand destruction has "probably just started, but it
doesn't look like it is going to be that big a deal," said
Michael Lo, a Hong Kong-based analyst at Nomura International.
"We're going through a phase of economic growth so I don't
expect high oil prices to hit GDP that much."
CHINA
China, the world's second-largest oil consumer after the
United States, will release first quarter GDP and March consumer
price data on Friday.
Markets will be watching the data closely for any sign of a
slowdown in China's demand, which has driven the growth in
global fuel consumption for the last decade.
"People are already forecasting a slowdown in China but the
growth is still there," Lo said.
China annual inflation accelerated to between 5.3 and 5.4
percent in March, Hong Kong's Phoenix TV said, citing an unnamed
source. This was slightly higher than economists' expectation of
5.2 percent in a Reuters poll. []
The data may signal what China's next move will be on
monetary tightening. Beijing on Wednesday vowed to use all tools
at its disposal to fight inflation, heightening fears of more
measures to cool the speed of growth that could crimp fuel
demand. [] []
As a prelude to the GDP data on Friday, China reported
strong electricity output growth in March as the country heads
into peak summer demand. []
LIBYA
Libyan rebels are exporting a "minimum amount" of crude from
its fields which are pumping around 100,000 barrels per day
(bpd), less than a tenth of the country's usual production at
1.6 million bpd. []
JPMorgan said supply is unlikely to rise significantly
unless a resolution to the conflict is reached.
"Until then we expect exports to remain low and fluctuate
widely, as we have seen in the past in conflict areas," analysts
led by Lawrence Eagles said in an April 13 note.
U.S. GASOLINE STOCKS DOWN
U.S. gasoline inventories fell 7 million barrels last week
to their lowest level since October, data from the U.S. Energy
Information Administration showed.
The weekly fall was the biggest since October 1998 as
refineries clear out winter grade gasoline ready for summer
blends, and undertake maintenance ahead of the peak holiday
driving season.
U.S. crude stocks rose for a sixth straight week by 1.6
million barrels to 359.3 million barrels.
"Total gasoline stocks are approaching the five year average
and are below 2010 levels," JPMorgan analysts said.
"The build in crude and draw in products points to continued
refinery maintenance in the U.S., as the spring turnarounds wrap
up," they said, adding that unplanned outages also reduced run
rates.
(Editing by Michael Urquhart)
