* Houston port snagged by power line, supports oil
* French strike keeps port shut, provides oil price lift
* After bounce, stronger dollar curbs oil price rise
* Coming up: API oil inventory data, 4:30 p.m. EDT Tues
(Recasts, updates prices, market activity, changes byline and
moves dateline from previous LONDON)
By Robert Gibbons
NEW YORK, Oct 4 (Reuters) - U.S. oil prices seesawed on
Monday, supported by a strike at France's top oil port and
disruptions to Houston petrochemical shipping, while a dollar
bounce and Wall Street weakness kept gains in check.
The strike at French port Fos-Lavera entered its eighth
day, blocking dozens of oil tankers, trimming some refinery
output and firming European fuel prices. []
The Houston Ship Channel will not reopen until Tuesday
night at the earliest after a barge struck an electrical tower
early on Sunday, the U.S. Coast Guard said. []
U.S. crude for November <CLc1> delivery rose 10 cents or
0.12 percent to $81.68 per barrel by 12:34 p.m. EDT (1634 GMT),
after reaching a nearly two-month high at $82.38.
Strong U.S. gasoline futures, reacting to the problems at
the French and Houston ports, also supported crude prices.
ICE Brent November crude <LCOc1> slipped 16 cents or 0.19
percent to $83.59 a barrel.
"The Houston Ship Channel problem seems to be the main
reason crude is higher. Traders are pricing in that import
disruption and the French port strike is also supporting," said
Phil Flynn, analyst at PFGBest Research in Chicago.
Sunday's accident downed a power line across part of the
channel leading to Houston's port. The Coast Guard said four
refineries were affected, but Exxon's huge, 565,500
barrel-per-day Baytown, Texas, refinery suffered no impact.
[]
Helping to limit oil's strength, the U.S. dollar recovered
from early declines as renewed concerns about the financial
stability of peripheral euro zone countries hit the European
single currency. []
Bad news from Ireland, Portugal and Greece overshadowed
concerns the Federal Reserve may further ease U.S. monetary
policy, a move expected to weaken the U.S. currency.
A stronger dollar can weigh on dollar-denominated oil
prices because it weakens the buying power of holders of other
currencies.
Adding to the cautious sentiment, U.S. stocks fell about 1
percent after a brokerage downgrade of Microsoft <MSFT.O> and
new capital rules set by Switzerland revived worries about the
European banking system. []
Swiss regulators will require global banks UBS AG
<UBS.N><UBSN.VX> and Credit Suisse <CS.N><CSGN.VX> to hold far
more capital than their international rivals to prevent a
crisis. []
Wall Street was digesting mixed U.S. economic data. Pending
sales of previously owned U.S. homes rose more than expected in
August to a four-month high, the National Association of
Realtors said.
Another report showed new U.S. factory orders fell slightly
more than expected in August, as demand for transportation
equipment dropped sharply. Excluding the transportation
segment, orders rose 0.9 percent. []
Copper eased back on the dollar's strength after touching a
more than two-year peak in the previous session. []
Oil gained support early on Monday after a Sunday report
from Chinese state television that China's gross domestic
product is forecast to rise 9.5 percent in 2010, accelerating
from 9.1 percent in 2009. []
That followed strong manufacturing data from China and an
upward revision to U.S. economic and jobs data last week,
helping U.S. crude oil jump 6.65 percent for the week, the best
weekly gain in nearly 7-1/2 months.
(Additional reporting by Gene Ramos in New York, Ikuko
Kurahone in London and Alejandro Barbajosa in Singapore;
Editing by Dale Hudson)
