* Tropical Storm Bonnie en route to Louisiana -NHC
* Coming Up: European bank stress test results; 1600 GMT
* For a technical view, click: []
(Adds report some Spanish banks fail tests, updates prices)
By Alejandro Barbajosa
SINGAPORE, July 23 (Reuters) - Crude prices slid from an
11-week high to stay near $79 on Friday, as uncertainty about
European bank stress tests and U.S. oil demand tempered a boost
from positive corporate results and storm threats.
Prices have still climbed about four percent this week,
with U.S. crude for September <CLc1> down 35 cents at $78.95 a
barrel on Friday by 0658 GMT. They jumped more than 3 percent
on Thursday as Tropical Storm Bonnie over the Bahamas was
forecast to move towards energy infrastructure in the Gulf of
Mexico.
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Graphic on storm and its threat to energy infrastructure:
http://www.reuters.com/subjects/hurricanes
Link to the NHC: http://www.nhc.noaa.gov/
Link to weather models: http://www.skeetobiteweather.com/
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Asian stocks rose on Friday as strong earnings from U.S.
economic companies such as Caterpillar eased concerns about a
global slowdown, while the euro steadied ahead of European bank
stress test results later in the day. []
But sales of previously owned U.S. homes hit a three-month
low in June while new claims for jobless benefits surged last
week, Thursday data showed, the latest indications the economic
recovery of the world's top oil-consuming nation remains
tentative. []
"There are still a lot of macroeconomic concerns around,
and the stress tests from Europe are also spurring some
uncertainty," said Stefan Graber, a commodities analyst with
Credit Suisse in Singapore.
"We still have some weak spots in the oil market, and on a
global scale, it is fairly balanced at the moment," Graber
said, adding that "the fundamentals warrant this range between
$70 and $80," within which oil has continuously traded for
almost seven weeks.
For a graphic on weekly percentage changes for U.S. crude:
http://graphics.thomsonreuters.com/gfx/ABE_20102307132105.jpg
September ICE Brent crude <LCOc1> fell 32 cents to $77.50.
BANKS IN QUESTION
Results of the tests on 91 European lenders are eagerly
awaited by markets whose scepticism about the sector has driven
up funding costs and hurt appetite for risk since Greece's debt
crisis triggered fears the euro zone could unravel.
Several of Spain's 18 savings banks, including some of
those which have been involved in recent mergers, have failed
to pass tests to see how they would cope with worsened economic
conditions, newspaper El Pais reported on Friday citing
financial sources. []
For more stories on the stress tests, click:
[]
"Sentiment could show some decisive improvement if markets
think that the results of the tests are credible, that it's a
fair assessment of the situation in the banking system and that
only moderate recapitalisation is necessary," Graber said.
Major companies including UPS and 3M reported strong
revenues on Thursday, easing investor concerns about future
growth and boosting Wall Street and commodities. []
Forecasts call for Bonnie to pass over key oil and natural
gas production areas to the south of Louisiana before making
landfall in four days. []
All the weather models show the storm will skirt Florida
and move northwest across the oil-producing central Gulf of
Mexico before hitting the coast.
The storm threatened efforts to plug BP Plc's Gulf of
Mexico oil leak on Friday and officials said many of the
vessels and rigs involved in the operation would prepare to
move out of the system's path. []
(Editing by Ed Lane)
