* G20 finance ministers may downplay currency conflict
* Technicals show oil may slip to $79 []
* Coming Up: U.S. ECRI index, Weekly; 1430 GMT
By Alejandro Barbajosa
SINGAPORE, Oct 22 (Reuters) - Oil rose on Friday after jobs
and business activity data signalled the U.S. economy would
require additional stimulus, while G20 finance ministers meet
in South Korea as dollar volatility rattles commodities
markets.
U.S. crude for December <CLc1> rose 59 cents to $81.15 by
0320 GMT, aided by rising stock markets in Asia, reversing part
of Thursday's drop of more than 2 percent. ICE Brent <LCOc1>
gained 59 cents to $82.42.
Oil was still headed for a second straight week of losses,
responding to a rising dollar, which was on track for its first
week of gains in six weeks. A stronger dollar raises the cost
of oil imports for buyers excluding top consumer the United
States.
Despite intra-day volatility, oil prices have so far this
month remained in a relatively tight range slightly wider than
$5, between Tuesday's low of $79.25 after China raised interest
rates and a five-month peak of $84.43 on Oct. 7.
"For the last three or four months, we saw a big decline
in the U.S. dollar, and now lots of people see that it will be
time for a rebound or to see a correction," said Ken Hasegawa,
a commodity derivatives manager at Japan's Newedge brokerage.
"But if the Fed in November shows big stimulus plans, that
will send the dollar even lower. Participants have no
confidence about price direction. It's still a rangebound
market."
Oil's gains on Friday also came on the back rising equities
in Asia, Hasegawa said, supported by the technology sector.
A batch of new U.S. data on Thursday painted a picture of
an economy stuck in slow-growth mode, reinforcing views the
Federal Reserve will ease monetary policy further next month to
try to reinvigorate the recovery. []
New claims for jobless benefits dropped last week but
remained at levels suggesting little improvement in the
distressed labor market. Other reports showed only a modest
rise in a gauge of future U.S. economic activity and a small
gain in factory activity in the country's Mid-Atlantic region.
China's decision to raise interest rates this week was
still seen as an indication that the world's second-largest oil
consumer would tighten policy to keep its economy from
overheating, with apparent bearish implications for
commodities.
But on reflection, the rate increase could be supportive
for prices as China seeks to place its economy on track for
continued expansion, analysts said. Bank of Japan chief Masaaki
Shirakawa on Friday said China's rate hike was a step to
support sustainable growth. []
The U.S. dollar held steady in early Asian dealings on
Friday after a volatile session in New York but was seen
supported, with investors likely to trim short positions on
caution ahead of a G20 finance ministers' meeting in Gyeongju.
[]
An informed source said G20 officials were unlikely to
reach an accord rejecting currency devaluations and capping
current account balances after U.S. proposals ran into stiff
opposition. []
(Editing by Clarence Fernandez)
