* Dollar <.DXY> rises as euro <EUR=> weakens
* Rebel group says it blows up oil facility in Nigeria
* Oil likely to rise to $80-$90 range, Barclays says
* Coming up: U.S. non-farm payrolls at 1330 GMT on Friday
(Updates throughout, adds detail)
By Christopher Johnson
LONDON, March 4 (Reuters) - Oil slid towards $80 on Thursday
as the dollar strengthened, dragging fuel prices off seven-week
highs after news of another build in U.S. crude inventories.
The dollar gained around 0.3 percent against a basket of
currencies as the euro edged lower following comments by the
European Central Bank that reinforced the view interest rates in
the region would remain low for the foreseeable future. []
Reports of an attack on an oil facility in Nigeria gave some
support to prices, raising worries over production from the
Niger Delta after a period of relative calm.
Benchmark U.S. crude oil futures <CLc1> for April fell 30
cents to $80.57 per barrel by 1436 GMT. The contract reached a
peak of $81.23 on Wednesday, its highest intraday point since
Jan. 12. London ICE Brent <LCOc1> for April was down 30 cents at
$78.95.
"A stronger dollar and a build in U.S. crude stocks are both
negative factors," said Carsten Fritsch, commodities analyst at
Commerzbank in Frankfurt. "We expect oil prices will come down
from these levels as fundamentals are not supportive."
A weaker dollar tends to support oil because it makes
dollar-denominated commodities cheaper for other currency
holders. Currencies have led sentiment in recent weeks, with the
focus on the euro zone and worries that a prolonged economic
slowdown would hit demand for energy.
News from Nigeria was supportive. []
A militant faction in Nigeria's restive Niger Delta said it
blew up an oil manifold operated by Italy's Agip <ENI.MI> on
Wednesday. There was no immediate independent confirmation.
The attack would be the second in as many days in the Delta,
where an amnesty programme last year brought more than six
months of peace.
"PRICES TOO HIGH"
The Energy Information Administration said on Wednesday U.S.
crude inventories last week rose by a larger-than-expected 4.1
million barrels, while gasoline stocks also increased.
Balancing those figures were data showing total U.S. oil
demand grew 0.3 percent in the past four weeks from a year
earlier, raising expectations for an end to a 1-1/2-year period
of sustained consumption decreases.
China Investment Corp, the country's sovereign wealth fund,
believes commodity prices are outpacing the global economic
recovery, fuelled by loose monetary policies, a top official
said on Thursday.
"Personally, I think the prices are a bit too high, relative
to the strength of real economic recovery," Jesse Wang, CIC
executive vice president and chief risk officer, said on the
sidelines of a conference in Beijing. []
Oil prices have ranged between $69 and $84 a barrel over the
past few months, at a time of uncertainty over the pace of
recovery. But a decline in crude stocks and the surplus held in
floating storage has set the stage for an increase towards the
$80-$90 range, according to Barclays Capital.
The latest data from the Joint Oil Data Initiative (JODI)
implies Asian demand has been growing by more than 2 million
barrels per day from a year earlier, according to Barclays.
"If Asian demand can grow at such rapid rates when prices
are in the $70 to $80 range, then prices cannot stay in that
range for much longer," Barclays analysts headed by Paul
Horsnell said.
The market awaited key U.S. non-farm payroll data on Friday
at 1330 GMT.
(Editing by Sue Thomas)
