* China's economy picks up speed, Q2 GDP growth 7.9 pct y/y
* U.S. crude stocks down, gasoline up in July 4 week
(Updates prices, adds Asian stocks, looming bankruptcy at CIT)
By Fayen Wong
PERTH, July 16 (Reuters) - Oil was little changed at above
$61 on Thursday, after gaining 3.4 percent in the previous
session, as investors remained cautious about the pace of
global economic recovery despite positive growth numbers from
China.
While better-than-expected gross domestic product (GDP)
growth from China, the world's No. 2 energy consumer, should
have been supportive of crude prices, analysts said persistent
worries about underlying weak energy demand weighed on
sentiment.
U.S. oil for August delivery <CLc1> edged up 14 cents to
$61.68 a barrel by 0618 GMT, after gaining 3.4 percent on
Wednesday. London Brent crude crept up 11 cents to $63.20.
"There's no doubt that the Chinese GDP numbers are positive
and would provide an underlying support for crude," said Victor
Shum, a Singapore-based analyst at Purvin & Gertz.
"But sentiment is still cautious and investors are also
somewhat sceptical of an economic recovery anytime soon,
particularly in the U.S., where unemployment is still very
high."
China's growth rate shot up in the second quarter on the
back of a surge in state spending and bank lending, boosting
hopes the biggest emerging economy will lead the way out of the
worst global downturn since the 1930s. []
Annual gross domestic product growth accelerated in the
second quarter to 7.9 percent from 6.1 percent in the first,
beating analysts' forecast for a growth rate of 7.5 percent and
making it the best-performing major economy in the world.
While the news helped to power Asian shares to a one-month
high on Thursday, the rally was not mirrored in oil prices as
investors needed more evidence to be convinced of an economic
turnaround, analysts said.
A looming bankruptcy at U.S.-based CIT Group Inc, a lender
to hundreds of thousands of small and mid-sized U.S.
businesses, also prompted investors to adopt a wait-and-see
stance. []
Oil's gains on Wednesday came after the Energy Information
Administration (EIA) said commercial crude oil stocks fell 2.8
million barrels last week, against a forecast of a 1.6 million
barrel drop from analysts polled by Reuters. []
A rally in the equities markets, along with a weak U.S.
dollar, which traded near a one-month low against major
currencies, also supported oil prices.
Analysts said investors will be keenly watching weekly U.S.
jobless claims data due to be released later, as well as the
Philadelphia July business activity survey and the National
Association of Home Builders July housing market index for more
clues on the health of the world's largest economy.
Oil prices have lost 12 percent this month and dropped to a
near two-month low of around $58 a barrel earlier this week, on
mounting worries over whether economic recovery will come soon
enough to help spur flagging fuel demand.
"If oil prices can hold onto their recent gains and go
higher over the next couple of days, then we might be able to
break out of this $58-$61 band," said Clarence Chu, a trader at
Hudson Capital Energy in Singapore.
(Editing by Ben Tan)
