* Dollar up as euro falls to 14-month low
* Stock markets also hit on fears of Greece contagion
* Coming up: U.S. jobless claims, 1230 GMT
(Recasts, updates prices)
By Joe Brock
LONDON, May 6 (Reuters) - Oil fell further below $80 a
barrel on Thursday, after earlier hitting a six-week low as
fears a Greek-style debt crisis may spread to other European
nations raised uncertainty over future global energy demand.
The euro fell to a 14-month low, while the U.S. dollar
strengthened as scepticism that Greece could deliver on its
promises of strict austerity measures dominated financial
markets. [] []
A stronger U.S. dollar makes oil more expensive for
investors holding alternative currencies. []
U.S. crude for June delivery <CLc1> fell 42 cents to $79.55
by 1226 GMT, having earlier slumped to $78.87 a barrel, the
lowest intraday price since March 22 when it hit $78.57.
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 builds in crude stocks.
Technically, $80 still remains a support level and unless
U.S. crude can make a significant close below this level there
could be a turn to the upside, analysts said.
London Brent crude <LCOc1> fell 15 cents to $82.46 a barrel.
"The dollar is up as risk appetite has been dampened and
prices are adjusting to more realistic levels as earlier this
week prices were not backed up by fundamentals," said Carsten
Fritsch, oil analyst at Commerzbank in Frankfurt.
"More proof of weak demand came yesterday with U.S. data
showing crude and products stocks rose."
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For a chart on the 2010 performance of commodities, see:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
For a technical chart, see:
http://graphics.thomsonreuters.com/gfx/WT_20100605084529.jpg
For a graphic on the oil to dollar correlation, click:
http://graphics.thomsonreuters.com/gfx/RSW_20100605144040.jpg
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NIGERIA
In Nigeria, Africa's largest oil exporter, Acting President
Goodluck Jonathan was sworn in as head of state on Thursday
following the death of President Umaru Yar'Adua. []
Analysts said his death on Wednesday was unlikely to have an
impact on oil production in Nigeria, which has suffered major
outages due to attacks on oil facilities in the last five years.
"I think with Yar'Adua's death at least the situation is
clear now," said Holly Pattenden, head of oil and gas at
Business Monitor International.
"I don't think it is in militants' interest to cause trouble
at this stage and they may well want to give the new
administration a chance," Pattenden added.
U.S. jobless claims data due later on Thursday was likely to
focus investor attention on the strength of economic recovery in
the world's largest energy consumer, after oil inventory data on
Wednesday highlighted the fragile state of U.S. fuel demand.
U.S. weekly oil data showed a higher-than-expected build in
crude stocks, while gasoline inventories also rose.
[]
Doubts over Greece's ability to carry out tough spending
cuts in return for a 110 billion euro aid package from the
European Union and the International Monetary Fund sapped risk
appetite, helping to push global equities lower.
Japan's Nikkei average <> ended down 3.3 percent and
Shanghai <> down more than 4 percent on tightening worries,
while European stock markets were flat.
(Additional reporting by Florence Tan in Singapore; editing by
Keiron Henderson)
