* Oil extends losses after weak US jobless claims data
* U.S. equities fall, dollar gains as jobs market ails
* Rising U.S. fuel stocks raises fresh demand worries
(Recasts, updates prices, changes dateline, previous
LONDON)
NEW YORK, Aug 12 (Reuters) - Oil fell to a two-week low
near $76 a barrel on Thursday, marking a third straight session
of sharp losses, as fickle fuel demand continued to sour
investor risk appetite.
Demand worries grew as data showed that people filing new
claims for unemployment benefits in the United States
unexpectedly rose in the latest week to its highest level in
close to six months. []
U.S. crude <CLc1> for September delivery was down $1.27 at
$76.75 a barrel at 11:20 a.m. EDT (1520 GMT). It earlier
dropped as low as $76.05, the lowest for front-month crude
since July 28, after the release of the jobs data.
Brent crude <LCOc1> traded at $76.37, down $1.28.
The news on jobless insurance claims was "a further
reminder of that economic growth is slowing in the world's
largest economy," said Tim Evans, analyst at Citi Futures
Perspective in New York.
"The petroleum markets remain under follow-though selling
pressure from Wednesday's drop ... with a weaker S&P 500 and
firmer U.S. dollar also part of the mix," Evans added.
The oil price slide comes a day after data showed a
higher-than-expected rise last week in gasoline stockpiles,
underlining demand weakness even as the U.S. summer driving
season peaks. []
China, which rivals the U.S. as the world's biggest oil
consumer, showed signs of an abrupt slowdown in economic growth
this week.
U.S. equities dropped on the jobless claims data, following
an earlier slide in Asian stock exchanges that reeled from the
gloomy Chinese data. [] []
The U.S. dollar rose against a basket of other major
currencies <.DXY>, extending the previous day's strong gains
amid risk aversion fueled by the jobs data.
Jittery investors turned to gold, the traditional
safe-haven asset in troubled economic times. Gold was on track
to post its biggest one-day rally in two months as the latest
set of troubling economic data further eroded confidence in the
global economy. []
The International Energy Agency added to negative sentiment
about future energy consumption, after the adviser to 28
industrialized countries said on Wednesday that oil demand
growth next year would be sharply lower if the economy falters.
[]
Weak economic data continues to paint a picture of a
fragile global recovery after the Federal Reserve on Tuesday
warned about the U.S. economy.
The U.S. trade gap widened 18.8 percent in June, suggesting
its second quarter economic growth was weaker than previously
thought. []
The downbeat Fed view, plus the signs of a slowdown in
Chinese economic growth combined on Wednesday to erase the
years gains in U.S. equities.
(Additional reporting by Gene Ramos and Robert Gibbons in New
York, Joe Brock in London, Florence Tan in Singapore; Editing
by Marguerita Choy)
