* Investors lock in profits
* New York heating oil, ICE gas oil support fundamentals
* Coming Up: U.S. durable goods orders for Aug; 1400 GMT
(Updates, changes dateline from SINGAPORE)
LONDON, Oct 4 (Reuters) - Oil eased from a two-month high on
Monday as investors locked in profits after a recent rally, but
markets remained cautious about the pace of global economic
recovery and speculation of further monetary policy easing.
Analysts pointed out the strong Chinese economy and early
signs of tightening in the winter fuel market would limit
further falls in the overall oil complex.
By 0747 GMT, U.S. crude <CLc1> fell 74 cents to $80.85 a
barrel, after touching $81.87 earlier, the highest level since
Aug. 6. Prices have risen about 10 percent since the Sept. 21
close at around $73.50.
ICE Brent crude futures <LCOc1> fell 75 cents to $83.00.
Andy Sommer, analyst with energy trading firm EGL in
Switzerland, said some investors were trying to lock in profits
after the recent oil price rally.
"The market was overbought for the past couple of weeks,"
Sommer said. "However, prices are still very high and I do not
expect to see a big drop because the U.S. GDP last week was good
and the Chinese economy is still strong."
The United States and China are the world's top two oil
consumers.
On Sunday, China's state television reported China's gross
domestic product (GDP) is forecast to rise 9.5 percent in 2010,
accelerating from 9.1 percent in 2009. []
That followed strong manufacturing data from China and the
upward revision for U.S. economic and jobs data last week.
FURTHER EASING
EGL's Sommer added oil and global markets might see
relatively high volatility ahead due to the state of global
economic recovery and speculation that the U.S. Federal Reserve
might ease its monetary policy further.
Further easing would likely increase dollar liquidity and
lead to more currency weakness.
A weaker dollar increases the purchasing power of oil and
commodities buyers outside the United States.
The dollar gained slightly across the board, but it hovered
in range of a 15-year low versus the yen. []
European equities slipped for a sixth straight session to a
one-month low on Monday. []
Analysts said key economic figures from the United Sates
include durable goods orders for August on Monday and monthly
non-farm payrolls on Friday.
HEATING DEMAND
Losses in heating oil futures in New York and ICE gas oil in
Europe were limited compared with crude oil. <NEWOILOIL>
"The recent strength in the gasoil and heating oil cracks
has been due to a variety of reasons that have tightened up
prompt availabilities of physical gas oil," Societe Generale's
Mike Wittner said.
"As a result, for the time being, this key part of the
barrel is providing some fundamental leadership to the oil
complex."
In Europe, where oil product supplies are relatively tight,
strikes at France's key oil port looked likely to continue on
Monday and the CGT union for Total's <TOTF.PA> said the oil
major's refineries would decide whether or not they would join
the port strike. []
In the U.S., Houston Ship Channel, the main waterway through
which crude flows into the Texas refining hub, may be closed for
three days after a barge struck a highline electrical tower on
Sunday, downing a power line stretching across the waterway to
the busiest U.S. petrochemical port, the U.S. Coast Guard said.
[]
(Reporting by Ikuko Kurahone in London and Alejandro
Barbajosa in London)
