(Updates prices)
* Oil edges up after near 7 pct fall on weak U.S. GDP data
* U.S. stocks markers post 3-day gains on Fed rescue
package
* Weekly U.S. oil stocks data forecast to show crude rises
By Maryelle Demongeot
SINGAPORE, Nov 26 (Reuters) - Oil rose to above $51 a
barrel on Wednesday, after a near 7 percent fall the previous
day, when data showed the U.S. economy last shrank at its
fastest pace in seven years, reflecting slowing demand in the
world's largest oil consumer.
A new $800 billion Federal Reserve rescue package helped
U.S. stock markers Dow and S&P 500 achieve their first
three-day run since the summer on Tuesday after oil settled,
but failed so far to lift oil prices. []
U.S. light crude for January delivery <CLc1> rose 45 cents
to $51.22 a barrel by 0605 GMT, having settled down $3.73 at
$50.77 on Tuesday after two-day gains of nearly 10 percent.
Oil prices have failed to post three consecutive days of
gains since September.
London Brent crude <LCOc1> rose 43 cents to $50.78.
"Concerns about weakening oil consumption remain a key
negative for the oil price," said David Moore, commodity
strategist from the Commonwealth Bank of Australia, in a daily
note.
Revised U.S. Commerce Department data showed on Tuesday
third-quarter U.S. gross domestic product dropped 0.5 percent
against a year earlier, the sharpest fall since the third
quarter of 2001. []
Consumers spending, which accounts for two-thirds of
economic activity in the U.S., fell to a 28-year low.
Slowing demand and recession concerns have knocked oil from
its record peak above $147 a barrel in July, prompting members
of the Organization of Petroleum Exporting Countries to call
for further supply reductions to support prices.
OPEC ministers next gather in Cairo on Nov. 29 for a
consultative session, with the organisation's next
policy-setting meeting in Algeria on Dec.17.
Price hawk Iran on Tuesday said non-OPEC states should
cooperate with OPEC in stabilising the oil market because, if
the group acts alone, prices will continue to fall.
[]
OPEC members Iran and Venezuela have called on the cartel
to cut production by at least another 1 million barrels per
day, after last month's 1.5 million bpd cut failed to lift
prices.
Another cut, which may be decided only at OPEC's meeting in
December, could fail to raise prices.
"With prices still comfortably above the top end of the
cost curve, and the focus clearly on demand conditions,
tightening supply will unlikely create much price support,"
said ANZ Bank in its weekly commodities report.
Adding further gloom to Tuesday's weak economic data,
weekly oil and products U.S. stocks data, due to be released at
1535 GMT, is expected to show another rise in U.S. crude
stocks. []
Analysts polled by Reuters project a rise of 800,000
barrels in crude supplies, a 400,000 barrel increase in
gasoline stocks and a 800,000 barrel fall in distillate
inventories, which include heating oil, as cold weather hits
the giant U.S. Northeast market.
(Editing by Ben Tan)
