* Worries about Greece bolster dollar against euro
* OPEC decision, Fed rate policy underpin sentiment
* Coming Up: US weekly jobs data, Feb leading indicators
(Updates with prices, dollar)
By Jennifer Tan
SINGAPORE, March 18 (Reuters) - Oil slid towards $82 a
barrel on Thursday, surrendering most of the previous day's
gains of more than 1 percent as the dollar bounced back from
its lowest in a month and a half.
Data due later in the day, including U.S. weekly jobless
claims, February leading indicators and February consumer
prices, will offer more clues on the pace of recovery in the
world's largest economy and the outlook for energy demand and
the dollar.
U.S. crude for April delivery <CLc1> shed 85 cents to
$82.08 a barrel by 0820 GMT, after settling $1.23 higher on
Wednesday. London Brent crude for May <LCOc1> fell 81 cents to
$81.15.
"The market's undertone is 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.
The dollar rose broadly on Thursday, recovering some losses
made the previous day against higher yielding currencies, as
the euro fell on a report that Greece is not hopeful of aid
from the European Union. [] []
The dollar index <.DXY>, which tracks the performance of
the greenback against a basket of six major currencies, rose
0.49 percent to $80.027 by 0820 GMT.
OPEC HOLDS OUTPUT STEADY
The greenback 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.
[] []
A weaker dollar usually supports oil prices as it makes
dollar-denominated commodities less expensive for holders of
other currencies.
Asian stocks slipped back on worries about Greece, despite
the strong gains on Wall Street on Wednesday. []
Oil got a boost on Wednesday from the U.S. Energy
Information Administration's report showing 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. []
Further price support came from news that managers of
defunct Russian oil firm YUKOS had won injunctions hitting
payments by foreign customers to Russian oil major Rosneft
<ROSN.MM>, jeopardising delivery of up to a fifth of Russia's
oil exports. []
OPEC ministers agreed not to change oil output targets they
are already exceeding, anticipating that demand will pick up
later in the year to mop up extra barrels the producers may
pump. []
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.
(Editing by Himani Sarkar)
