* Wall St. ends higher and global stock gains aided oil
* China CenBank advisor sees slower growth, weighs on oil
* Coming up: Federal Reserve 2-day meeting starts Tuesday
(Recasts, updates with settlement prices)
By Robert Gibbons
NEW YORK, June 18 (Reuters) - U.S. crude oil prices
finished higher on Friday, having wavered along with U.S.
equity markets, while oil traders' concerns about the danger of
slowing Chinese demand and longer-term deepwater supply risks
weighed on Brent crude and products.
"The complex reversed patterns of the past couple of
sessions as the crude curve strengthened and the crack (refined
product to crude oil) spreads relinquished a significant
portion of this week's gains," Jim Ritterbusch, president at
Ritterbusch & Associates said in an afternoon note.
U.S. crude futures for July <CLc1> rose 39 cents to settle
at $77.18 a barrel, after prices seesawed either side of their
200-day moving average ahead of the contract's expiration next
Tuesday. (Graphic: http://link.reuters.com/puq72m)
U.S. crude prices gained for the second week in a low.
Front-month August ICE Brent futures <LCOc1> fell 46 cents
to settle at $78.22 a barrel, having traded as low as $77.25
earlier.
Front-end U.S. prices held firmer relative to products and
longer-dated futures. On Thursday, products and profit margins
surged on refinery glitches and signs of improving demand.
The approach of the U.S. July crude oil's contract
expiration helped support it. Volume on the July contract was
light at about 139,300 contracts and open interest at the
session's start was only 77,148 contracts.
"But looking at the chart, we're just seeing buying into
the dips. The products slipped after the recent jump, people
taking some profit ahead of the weekend," said Richard
Ilczyszyn senior market strategist Lind-Waldock in Chicago.
U.S. stocks ended higher after weathering volatility ahead
of the expiration of stock options, posting back-to-back weekly
gains. [] World stocks rose a ninth straight session.
[]
U.S. crude oil prices fell as low as $75.56 a barrel on
Friday after a central bank adviser in China said growth is
expected to slow in the second half of 2010 and double-digit
growth for the full year is unlikely. []
That news knocked Shanghai stock markets -- which have
often influenced sentiment in China-influenced commodities like
oil and metals, although Hong Kong shares ended higher and
posted their best week since April. []
Copper fell a third consecutive day, hitting its lowest
level in one week on weaker demand prospects. []
The concerns about China came after U.S. data on Thursday
showing weekly jobless claims increased and Mid-Atlantic
factory activity growth braked to its slowest pace in 10
months. []
LONGER-TERM RISKS
Prices of long-dated U.S. crude, which include contracts to
December 2018, have remained fairly steady around $95 since
BP's Deepwater Horizon explosion on April 20. (Graphic:
http://link.reuters.com/fyf82m)
But possible effects on the industry from the Gulf of
Mexico oil spill continues to be a factor, especially if it
limits growth in deepwater oil supplies if tougher new
regulations that increase costs are imposed.
While other producers have not joined the U.S. six-month
ban on deep water drilling, analysts still expect some toll on
supply and that concern has helped support far-forward oil
prices and natural gas prices.
Deutsche Bank analyst Adam Sieminski said the combination
of the drilling moratorium, tightened regulations and delays
could defer deepwater Gulf of Mexico output by nearly 50,000
bpd in 2010 and 200,000 bpd in 2011.
The International Energy Agency's Executive Director Nobuo
Tanaka said the IEA estimates global offshore oil output could
be reduced 800,000 to 900,000 barrels per day by 2015 if there
is an extended global moratorium on new drilling similar to
that in the U.S. Gulf of Mexico. []
But Tanaka also cautioned the downside risk to the global
economic recovery may prompt IEA to revise lower its demand
growth forecast.
(Editing by Marguerita Choy)
