* Dollar may strengthen further on euro zone debt concerns
* Nigerian output eyed after death of president
* Coming up: U.S. jobless claims; 1230 GMT
* For a technical view, click: []
(Recasts, adds gold, updates oil prices)
By Florence Tan
SINGAPORE, May 6 (Reuters) - Oil hovered near $80 a barrel
on Thursday, as expectations of a rosier economic picture for
the U.S. are countered by concerns over Greece's economy.
Oil returned most of its gains from earlier Thursday, as
Greece's economic crisis sparked concerns through global
markets that it could spread through Europe and beyond.
Spooked investors turned to safe havens such as gold and
the dollar, pushing their values higher. [] []
U.S. crude for June delivery <CLc1> rose 9 cents to $80.06
a barrel by 0539 GMT.
The contract dived more than 3 percent on Wednesday to
below $80 a barrel for the first time in six weeks after U.S.
government data showed crude stocks at the key storage hub in
Cushing, Oklahoma, rose 1.6 million barrels to a record of 36.2
million barrels.
London Brent crude <LCOc1> gained 2 cents to $82.63 a
barrel.
"The market is expected to recover slightly today after
sharp declines of $6 to $7 over the past few days," said Ken
Hasegawa, a commodities sales manager at brokerage Newedge
Japan.
Oil has seen strong support at $79, but prices may be
capped at $82 on Wednesday, he said.
"We have to be careful how the euro will perform in the
next few weeks. There is still room for the euro to further
decline against the dollar. Oil could possibly go down
further," Hasegawa added.
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The euro <EUR=> sank to its lowest level in over a year,
falling below $1.28 in Asia and down over 10 percent since the
start of the year.
Gold priced in euro <XAUEUR=R> struck another record at
918.74 euros on Thursday while the dollar rose 0.09 percent
against a basket of currencies. []
Analysts have said the euro is expected to remain weak as
investors remain highly sceptical Greece will be able to carry
out the tough austerity measures it promised in return for a
110 billion euro aid package from the European Union and the
International Monetary Fund. []
NIGERIA, U.S. DEMAND MAY SUPPORT
News of the death of Nigerian President Umaru Yar 'Adua may
create more uncertainty about the country's oil production.
Nigeria has always been a supportive factor to crude prices
as its production is often disrupted by militant attacks on
pipelines, but political instability may lend more support to
oil, Hasegawa said.
Yar 'Adua's death may pave the way for the most hotly
contested succession since the world's 15th largest oil
producer returned to democracy a decade ago. []
Analysts are also watching the U.S. jobless claims data due
later on Thursday for further confirmation that the economic
recovery is on track to boost oil demand.
Signs of a recovery in the labour market grew as reports on
Wednesday showed job growth among private firms and plans for
layoffs falling to their lowest in four years. []
Latest U.S. weekly oil data showed gasoline demand hit a
record high for any April, while diesel consumption has started
to recover, analysts at Barclays Capital said in a note.
Still, Energy Information Administration data showed
gasoline stocks rose 1.2 million barrels to 224.9 million
barrels, well above analysts' forecasts.
"It does finally look as if diesel demand is beginning to
join the path that the macroeconomic data implied it had to
sooner or later," the bank said.
(Editing by Ramthan Hussain)
(florence.tan@thomsonreuters.com; + 65 6870 3497; Reuters
messaging: florence.tan.thomsonreuters.com@reuters.net))
