UPDATE 8-Oil falls 1 pct to $80 on dollar, housing data

                                
 * Cushing oil inventories rise by 912,000 bbls -Genscape
                                
 * Stronger dollar, weak homes sales pressure oil
                                
 * Rebel group says it blows up oil facility in Nigeria
                                
 * Coming up: U.S. non-farm payrolls at 1330 GMT on Friday
 (Updates prices)
                                
 By Edward McAllister
                                
 NEW YORK, March 4 (Reuters) - Oil fell nearly 1 percent to $80 a barrel
on Thursday as the dollar strengthened and some weak economic data soured
sentiment after crude hit a seven-week high on Wednesday.
                                
 The euro fell versus the dollar on Thursday as comments by the European
Central Bank reinforced the view interest rates in the region will remain
low in the foreseeable future. [USD/]
                                
 A stronger dollar tends to pressure oil because it makes
dollar-denominated commodities more expensive for other currency holders.
                                
 Meanwhile, pending sales of existing U.S. homes fell more than expected
in January, according to the National Association of Realtors, casting a
shadow over some earlier positive economic data in the world's largest
energy consumer. [ID:nN04154147]
                                
 The market is awaiting key U.S. non-farm payroll data on Friday at 8:30
a.m. EST (1330 GMT).
                                
 Benchmark U.S. crude oil futures <CLc1> for April fell 81 cents to
$80.06 per barrel by 2:02 p.m. EST (1902 GMT). The contract reached a peak
of $81.23 on Wednesday, its highest intraday point since Jan. 12, as
gasoline prices hith the highest level since October 2008.
                                
 London ICE Brent <LCOc1> for April traded down 80 cents to $78.45 a
barrel.
                                
 "The market was not responding well to the positive economic reports.
Now home sales data is weighing. Once again the market is in $80/$81 range
and can't sustain a rally," said Tom Bentz, broker at BNP Paribas Commodity
Futures Inc in New York.
                                
 Crude oil prices have been trading in a tight range between $78 and $81
a barrel in recent days, balking when prices try to make a break to the
upside. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Crude oil's trading range: http://link.reuters.com/bux23j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 A report from energy industry data provider Genscape showed oil
inventories at the key U.S. crude oil hub at Cushing, Oklahoma, -- the
delievery point for the U.S. oil futures contrac -- rose by 911,583 barrels
to 31.74 million barrels in the week to March 2. [ID:nN04147430]
                                
 Earlier, data showed that U.S. jobs claims fell last week, the Labor
Department said on Thursday. A separate report from the Commerce Department
showed orders received by U.S. factories rose 1.7 percent in January after
a 1.5 percent increase in December. [ID:nN04232780]
                                
 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.
                                
 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. [ID:nLDE6231CC]
                                
 The attack would be the second in as many days in the Delta, where an
amnesty program last year brought more than six months of peace.
                                
 RISING STOCKS
                                
 China Investment Corp, the country's sovereign wealth fund, believes
commodity prices are outpacing the global economic recovery, fueled 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. [ID:nTOE623046]
                                
 However, 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.
                                
 A potentially bearish sign for crude demand came on Wednesday when the
Energy Information Administration said U.S. crude inventories last week
rose by a larger-than-expected 4.1 million barrels, while gasoline stocks
also increased, raising questions about U.S. energy demand. [EIA/S]
                                
 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.
(Additional reporting by Robert Gibbons and Gene Ramos in New York,
Christopher Johnson in London; Editing by John Picinich)