* 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 prices, adds graphic)
By Ikuko Kurahone
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 1155 GMT, U.S. crude <CLc1> fell 14 cents to $81.44 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 seven cents to $83.68.
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 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.
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 were limited
compared with crude oil and ICE gas oil in Europe firmed.
<NEWOILOIL>
"The recent strength in the gas oil 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."
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For 2010 commodity performance and heating oil's lead;
http://link.reuters.com/was95p
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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 at Total <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.
[]
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by James Jukwey)
