* Japan, South Korea industrial output disappoints
* Technicals show crude price is neutral []
* Coming Up: U.S. third-quarter GDP; 1230 GMT
By Alejandro Barbajosa
SINGAPORE, Oct 29 (Reuters) - Oil fell on Friday as
investors took profits at the end of a month of commodity price
gains based on expectations the Federal Reserve will ease U.S.
monetary policy when it meets next week.
U.S. crude for December <CLc1> fell 28 cents to $81.90 a
barrel at 0250 GMT, little changed from its close last Friday.
ICE Brent <LCOc1> fell 10 cents to $83.49.
Prices in October traded mostly between $80 and $85, up
from between $72 and $80 in September, as expectations grew
that the Fed would embark on a fresh round of bond purchases
known as quantitative easing to inject funds into a flagging
economy.
"Investors who have made good profits in October are
reducing their long positions, because if the Fed stimulus is
less than market expectations, the dollar will come back up and
commodities will sell off," said Tetsu Emori, a fund manager at
Tokyo-based Astmax Co Ltd. "People are very worried about a
slowdown in economic growth."
The last major economic cue for markets before the Fed
outlines steps to boost recovery in a meeting Nov. 2-3 will be
U.S. third-quarter GDP data due later on Friday.
Top oil consumer the United States is expected to show a 2
percent increase in third-quarter GDP growth, up from 1.7
percent in the second, due to higher consumer spending, a
Reuters poll showed. []
New claims for U.S. unemployment benefits unexpectedly fell
to a three-month low last week, but the underlying trend still
points to labor market stagnation. []
The economic performance of Japan, the world's
third-largest oil user, is falling short of market
expectations.
Japanese factory output fell for the fourth straight month
in September, the longest streak of declines in more than a
year, adding to signs the economy is losing momentum as slowing
export growth and a strong yen bite. []
Core consumer prices also marked their 19th straight month
of annual declines in September and household spending fell
from August, underscoring how sluggish consumption was keeping
Japan mired in grinding deflation.
And in South Korea, industrial output in September shrank
for a second consecutive month, data showed on Friday, missing
market expectations and adding to concerns about the slowing
global demand. []
The U.S. dollar found a steadier footing against major
currencies early in Asia on Friday, a day after posting its
biggest fall in over a week as a fickle market turned its
attention to looming U.S. growth data. []
Global stocks rose despite Wall Street's mixed finish and
the dollar's slide on Thursday, as investors pulled back before
expected upheaval from next week's U.S. elections and the
likelihood of more monetary easing. []
The world's biggest oil companies, Exxon Mobil <XOM.N> and
Royal Dutch Shell <RDSa.L>, reported sharply higher
third-quarter profits on Thursday, beating analysts' forecasts,
as rising energy demand drove up oil and gas prices and
fattened refinery margins. []
(Editing by Ed Lane)
