* EIA inventory data shows improving U.S. oil products
demand
* OPEC decision, Fed rate policy underpin sentiment
* Resistance seen around $83.95 level
* Coming up: US weekly jobs data, Feb leading indicators
By Jennifer Tan
SINGAPORE, March 18 (Reuters) - Oil eased below $83 a
barrel on Thursday, surrendering some of the previous day's
gains when prices surged more than 1 percent, buoyed by a
weaker dollar and signs of improving U.S. oil product demand.
A slew of U.S. economic data due later in the day,
including weekly jobless claims and February leading
indicators, will offer more clues on the pace of recovery in
the world's largest economy and the outlook for energy demand.
U.S. crude for April delivery <CLc1> shed 38 cents to
$82.55 a barrel by 0252 GMT, after settling $1.23 higher on
Wednesday. London Brent crude for May <LCOc1> fell 39 cents to
$81.57.
"The market's undertone is pretty firm, and seems to be
grasping at every single bit of news that is not worse than
expected as an excuse to rally," said Clarence Chu, a trader at
Hudson Capital Energy Asia in Singapore.
"But we see a huge roadblock ahead at the $83.95 level --
it's going to be very tough to get past that, and a lot of
profit-taking will emerge at that level," he said, adding that
he expected a narrow trading range of $80-$83 over the next
week.
Oil got a boost on Wednesday from the U.S. Energy
Information Administration's report showing that oil product
demand in the world's top energy consumer was up 3.5 percent
last week from a year ago.
U.S. distillate inventories fell 1.5 million barrels and
gasoline stocks dropped 1.7 million barrels, deeper than
expectations for a 1.1 million-barrel drawdown and an
800,000-barrel decline respectively. []
OPEC MAINTAINS OUTPUT TARGETS
Sentiment was also buoyed by OPEC's decision to leave
output targets unchanged at its policy-setting meeting in
Vienna. []
Members of the Organization of the Petroleum Exporting
Countries, which pumps roughly one in every three barrels of
oil, maintained official cuts of 4.2 million barrels per day
(bpd).
Since curbing output in December 2008 as the economic
crisis intensified, OPEC has seen prices rally from below $40 a
barrel to a peak of $83.95 in January, despite lower compliance
from some members in recent months.
On Thursday, the U.S. dollar recovered some of its losses
against higher-yielding currencies made the previous day, as
investors trimmed short dollar positions. []
The U.S. currency had fallen on Wednesday after a benign
inflation reading supported the Federal Reserve's renewed
pledge to keep interest rates near zero for a few more months.
[]
Further price support came from news that Russian oil major
Rosneft <ROSN.MM> faces a possible export deadlock after
bankrupt rival YUKOS won U.S. and British court injunctions,
making cash payments to the state oil company in the West very
complex. []
Rosneft declined to comment on the injunctions, which trade
and industry sources said were part of a legal battle between
YUKOS and the Russian government, which dissolved YUKOS after
intensifying pressure on the company between 2003 and 2007.
Most of the assets ultimately ended up with Rosneft.
At 1400 GMT, the U.S. Labor Department will unveil
first-time claims for jobless benefits for the week ended March
13. Economists forecast a total of 455,000 new filings, down
from 462,000 in the prior week.
The Conference Board will also release its report on
February leading economic indicators. Economists forecast a 0.1
percent rise, compared with a 0.3 percent increase in the prior
month.
(Editing by Ramthan Hussain)
