* US Q3 GDP up but tepid growth seen weighing on oil
* Disappointing German, Indian data pressures oil
* U.S. refined products contracts to expire
* Coming up: CFTC positions data, 3:30 p.m. EDT Friday
(Recasts, updates prices, market activity, changes byline and
moves dateline from previous LONDON)
By Robert Gibbons
NEW YORK, Oct 29 (Reuters) - Oil prices fell on Friday
after data showing tepid U.S. economic growth in the third
quarter left investors cautious ahead of expected monetary
easing from the U.S. Federal Reserve.
End-of-month positioning and profit taking along with the
expiration on Friday of U.S. November refined oil products
contracts also were cited as factors pressuring oil, along with
disappointing economic data out of Germany and India.
The U.S. economy grew at a 2.0 percent annual rate, up from
1.7 percent in the second quarter and in line with expectations
but unable to chip away at high unemployment. []
U.S. crude for December <CLc1> delivery fell 95 cents, or
1.16 percent, to $81.23 per barrel by 12:54 p.m. EDT (1654
GMT). A finish above $79.97 would still allow oil to post a
second straight monthly gain and the first monthly close above
$80 a barrel since April.
In London, ICE Brent December crude <LCOc1> fell 67 cents,
or 0.8 percent, to $82.92 a barrel.
"The initial (GDP) estimate was in line with expectations,
but might be seen as strong enough to limit the size of the
anticipated Fed move to ease -- the so called QE2," Tim Evans,
analyst at Citi Futures Perspective in New York, said in a
note.
QE2 is a term used by Fed watchers for the expected second
round of quantitative easing, or purshases of government debt,
by the U.S. central bank.
A strong dollar pressured crude early, but the dollar index
<.DXY> seesawed and the greenback fell sharply against the yen
on the expectations of more monetary easing. The dollar held
its gains versus the euro.
U.S. stocks were little changed as investors continued to
assess prospects for monetary stimulus by the Federal Reserve
and ahead of elections that could change the balance power in
Washington. []
Investors remain cautious ahead of U.S. mid-term elections
next Tuesday and the prospects that the Fed will announce
another round of asset buying next Wednesday.
"Today's economic data was not overly inspiring and the
allure of large quantitative easing moves by the Fed is
vanishing," said Phil Flynn, analyst at PFGBest Research in
Chicago.
"At the same time we've seen U.S. crude stocks rise even
though demand is not that high. Other news has been bearish.
India's crude oil imports are down and China is raising
petroleum prices."
The U.S. Energy Information Administration reported on
Wednesday that domestic commercial crude oil stocks rose 5
million barrels in the week to Oct. 22, much more than
forecast. []
SLUGGISH GROWTH
Disappointing data out of Germany, Europe's largest
economy, also weighed on oil. Germany's retail sales in
September posted their biggest monthly drop in 2-1/2 years.
[]
"People are very worried about a slowdown in economic
growth," said Tetsu Emori, a fund manager at Tokyo-based Astmax
Co Ltd. "Industrial production in some countries is quite
weak."
India's domestic oil product sales fell an annual 1.9
percent in September, its second straight monthly decline,
government data showed on Friday. []
India's crude imports declined an annual 21.9 percent to
10.94 million tonnes or about 2.67 million barrels per day in
September when Indian refiners processed 10.2 percent less oil
versus a year ago. []
The French strike over pension reforms eased further.
Workers at the Fos-Lavera oil terminal near the southern French
port of Marseille voted to end a month-long strike, and oil
tankers will start unloading later on Friday. []
(Additional reporting by Gene Ramos in New York, Emma Farge
and Isabel Coles in London and Alejandro Barbajosa in
Singapore; Editing by David Gregorio)
