* Oil production returns in U.S. Gulf after Bonnie
* For a short-term technical outlook see: []
* Coming Up: API U.S. oil inventory report; 2030 GMT
(Recasts, changes dateline to LONDON from SINGAPORE)
By Emma Farge
London, July 27 (Reuters) - Oil prices were steady near $79
a barrel as the fading Tropical Depression Bonnie brought more
output back online in the Gulf of Mexico, dampening otherwise
buoyant sentiment following positive U.S. macroeconomic data.
Nearly 50 percent of oil capacity in U.S.-regulated areas of
the Gulf of Mexico was estimated to be shuttered at one point at
the weekend and is now coming back onstream. []
U.S. oil prices fell 15 cents to $78.81 a barrel by 0937 GMT
on Tuesday. The previous day prices closed flat after briefly
rallying on stronger U.S. homes sales. []
ICE Brent <LC0c1> fell 23 cents to $77.27 a barrel by the
same time.
"With most complexes now at the top of their respective
trading ranges and things fairly clear on the storm front, we
suspect prices will likely head a little lower into the trading
range," said analyst Edward Meir at MF Global in a research
note.
The risk of output disruptions caused by hurricanes in the
U.S. Gulf tends to pack a premium into oil prices in the summer.
Forecasters have said the 2010 Atlantic hurricane season
could be the worst since 2005 but Bonnie is so far only the
season's second named tropical storm.
Rallying European shares -- which hit a five-week intraday
high on Tuesday on better bank results -- provided some support
to oil prices. []
PRICE JUNCTURE
Oil prices are now at a critical juncture and it remains to
be seen if they will break into a new range above the $70-$80 a
barrel where they have traded since early June, analysts said.
"It's a mixed set of signals. The market is considering a
move above $80 and if they do it will be seen as a positive
sign. Should they stay below $80 a further drop cannot be ruled
out as people will point to a double dip recession and a Chinese
slowdown," said Eugen Weinberg, head of commodities research at
Commerzbank in Frankfurt.
Some technical analysts think oil prices could soon test the
$80 a barrel range following a breach of the key 200-day moving
average technical level last week
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For a graphic on the technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102707085335.jpg
For a graphic on the performance of commodities so far this
year, see:
http://graphics.thomsonreuters.com/10/CRB_YTD.gif
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Industry group the American Petroleum Institute will publish
data on U.S. inventories at 2030 GMT on Tuesday, followed by
government statistics from the Energy Information Administration
on Wednesday.
U.S. crude oil inventories probably fell 1.8 million barrels
last week, a Reuters survey showed, while supplies of distillate
fuel, including diesel, may have climbed for the ninth
consecutive week and gasoline for the fifth, even as summer
demand peaks. []
Iran said on Monday it was ready to return to talks on a
nuclear fuel swap, a surprise that came shortly after the
European Union agreed tougher sanctions, including a block on
oil and gas investment. []
"There is some suggestion that Iran might be giving up. This
could lead to a decrease in the risk premium in the market but
it's not clear yet," said Weinberg.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Keiron Henderson)
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