Oil slips back below $67 after surge to 3-week high

                                
 * Wall St rally, strong corporate earnings offer boost
                                
 * US July consumer sentiment index reading due later
                                
 * Firm global equity markets to underpin sentiment
                                
 By Jennifer Tan
                                
 SINGAPORE, July 24 (Reuters) - Oil fell below $67 a barrel
on Friday, pulling back from a nearly 3 percent surge to a
three-week high in the previous session on positive U.S.
corporate earnings.
                                
 Strong results from companies like 3M & Co and AT&T Inc and
a rise in U.S. existing home sale in June gave a boost to the
idea that the U.S. economy is on the road to recovery, but late
results from Microsoft and Amazon were less bullish. [.N]
                                
 Hopes that a recovery in the world's top energy consumer
would spark a rebound in oil demand have pushed crude prices up
14 percent since a two-month low hit in the middle of July.
                                
 However, Thursday's rise in U.S. jobless claims could
foreshadow a lethargic recovery, with the release of the final
July Reuters/University of Michigan consumer sentiment index
later on Friday to provide the next clues.
                                
 U.S. crude oil for September delivery <CLc1> sank 51 cents
to $66.65 a barrel by 0215 GMT, after surging $1.76 to settle
at $67.16 a barrel on Thursday, the highest since July 1. Crude
is on track for a rise of about 5 percent so far this week.
                                
 London Brent crude <LCOc1> fell 45 cents to $68.80.
                                
 "The market is just undergoing a correction after the jump
in prices overnight, but the underlying tone is still pretty
positive, with the strong equity market and corporate earnings
in good shape," said Tetsu Emori, fund manager at Tokyo-based
Astmax Co Ltd.
                                
 "Oil is likely to trade in a range of $65-$70 next week,
with Wall Street and U.S. economic data continuing to drive
prices."
                                
 At 1355 GMT later, the Reuters/University of Michigan
Surveys of Consumers will release its final July consumer
sentiment index. Economists polled by Reuters expect a reading
of 65.0 compared with 70.8 in the final June report.
                                
 This comes after data from the Labor Department showed
first-time jobless benefit claims rose by a
higher-than-expected 30,000 to 554,000 for the week ended July
18. [ID:nN23379623]     In Asia, growing optimism about a U.S.
economic rebound helped Japan's Nikkei stock average <.N225>
climb 1.5 percent on Friday, and the dollar hold gains against
the yen. [.T] [USD/]
                                
 On the supply front, OPEC seaborne oil exports, excluding
Angola and Ecuador, will fall 390,000 barrels per day (bpd) in
the four weeks to August 8, said an analyst who tracks future
shipments. [ID:nWLA9718]
                                
 The producer group agreed to a series of cuts last year to
lop about 4.2 million barrels per day (bpd) of output from
global markets in a bid to lift flagging oil prices.
 (Editing by Michael Urquhart)