* Fall in U.S. equities drags price lower
* Prices stuck in narrow $7 range
* Warm U.S. weather; high stocks set ceiling
(Recasts, updates prices, market activity; new byline,
dateline, previously LONDON)
By Edward McAllister
NEW YORK, Nov 19 (Reuters) - U.S. crude futures fell more
than 2 percent on Thursday as a stronger dollar weighed and
weaker equities raised concern about the economy and a
potential rebound in energy demand.
U.S. crude prices for December delivery <CLc1> fell $1.92
to $77.66 a barrel by 12:05 p.m. EST (1705 GMT). Brent crude
<LCOc1> for January delivery fell $1.67 to $77.80.
"Wall Street had a weak opening, which added to the
pressure on crude from the dollar's moving up some," said Tom
Bentz, analyst at BNP Paribas Commodity Futures Inc in New
York.
Investors have scoured economic data in recent months for
signs of a recovery that might boost global energy demand.
The dollar rose against the euro on Thursday, moving up
from 15-month lows earlier in the week. A stronger dollar makes
dollar-denominated commodities like oil more expensive for
holders of other currencies and tends to pressure prices.
[]
U.S. stocks fell, with all major indexes down more than 1
percent on weakness in the technology and health insurance
sectors. []
U.S. oil prices rose on Wednesday above the key $80 a
barrel level after government data showed a drop in crude and
product inventories in the world's largest oil consumer.
[]
Crude stocks fell a more-than-expected 900,000 barrels and
while distillate stocks including diesel and heating oil fell
300,000 barrels this was less than analyst projections.
FLOATING STOCKS
But analysts said mild weather in the United States and
high global oil products stocks held in storage on land and on
floating vessels would limit oil's potential upside.
Floating stocks of oil products, mostly distillates, are
set to rise to over 97 million barrels by the end of the year,
according to Reuters estimates. []
"Temperatures are unseasonably mild in the United States
and crude is holding the range between the high $70s and low
$80s," said Peter McGuire, managing director of CWA Global
Markets.
Since hitting a high of $82 a barrel in October, U.S.
prices have traded in a narrow $7 band.
On the supply side, the Organization of the Petroleum
Exporting Countries should hold oil output steady when it meets
in December as current prices do not suggest the need to change
supply, the head of Libya's National Oil Corporation said on
Wednesday. []
Implied oil volatility is the lowest since February 2008,
back near levels before last year's surge to a record high.
<CLATMIV>
For a graphic showing oil prices and implied volatility,
click:
http://graphics.thomsonreuters.com/119/CMD_OLVLTY1109.gif
The market shrugged off news that the number of additional
U.S. workers claiming unemployment benefits was unchanged at
505,000 in the week ending Nov. 14. []
(Additional reporting by Robert Gibbons and Gene Ramos in
New York, Emma Farge in London Nick Trevethan in Singapore;
Editing by David Gregorio)
