* Oil falls on economic worries, jobs market blues
* U.S. equities fall, dollar up as jobs claims data
* Rising U.S. fuel stocks raises fresh demand worries
* Coming up: OPEC monthly oil demand forecast, Friday
(Updates market activity, prices, adds byline)
By Gene Ramos
NEW YORK, Aug 12 (Reuters) - Oil slid 3 percent on
Thursday, making its steepest three-day decline since mid-May
after an unexpected rise in U.S. jobless claims further stoked
fears that a hoped-for economic recovery was unravelling.
Prices vascillated with equity markets through much of the
session, but ultimately ended near their lows even after
equities pared losses, with some bullish investors losing faith
in oil's ability to break out of its near year-long $70-85
trading range as the economic outlook darkened and fuel stocks
expanded.
U.S. crude <CLc1> for September delivery fell 2.9 percent
or $2.28, to settle at $75.74 a barrel, the lowest in a month.
Prices hit session low of $75.52, the lowest since July 19,
taking three-day losses to 7 percent.
Trade was active, with over 800,000 lots on NYMEX crude
futures for a second day running, the most in two months.
Brent crude <LCOc1> ended down $2.12 at $75.52.
Oil deepened earlier losses in tandem with falling stocks
and a rising dollar after 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. []
That news exacerbated concerns about the potential for
higher global oil demand after the U.S. Federal Reserve on
Tuesday painted a picture of a fragile global recovery and
Chinese data showed slowing factory growth.
"It's a combination of a jobs claims data and the sell-off
in equities. The oil market is trapped in the $70 to $80 range
right now, with fears rising about global growth prospects,"
said Richard Ilczyszyn, senior market strategist at
Lind-Waldock in Chicago.
Investors fled oil and other risk markets, shifting funds
to the dollar and gold futures as they bet on safer assets.
Gold <XAU=> rose by 1.5 percent, its biggest gain in over two
months, while the U.S. dollar index climbed 0.34 percent,
pausing after the previous day's surge. []
"Institutional type long positions continued to be unwound
today despite a steadier tone to the euro and some deceleration
in this week's equity decline," said Jim Ritterbusch, president
of Ritterbusch and Associates in Galena, Illinois.
Oil inventory data this week also fed fears about the state
of consumption in the world's biggest consumer, with a bigger
than expected counter-seasonal rise in gasoline stockpiles in
the midst of the U.S. summer driving season. []
However, U.S. gasoline futures outperformed the oil complex
on Thursday as traders who sold gasoline and bought crude moved
to lock in profits on the crack spread, which dived from over
$10 a barrel to a 2010 low under $6 since the start of August.
Gasoline stockpiles also increased substantially at
Europe's Amsterdam-Rotterdam-Antwerp storage hub over the past
week with due to weak demand and overproduction, Dutch oil
analyst Pieter Kulsen said on Thursday. []
Further adding to concerns, energy data information
provider Genscape said on Thursday that crude inventories at
the key Cushing, Oklahoma, delivery hub rose 126,077 barrels to
39.89 million barrels in the week to Aug. 10, just shy of a
record high 40 million barrels in late July. []
The International Energy Agency, the adviser to 28
industrialized countries said on Wednesday that oil demand
growth next year would be sharply lower if the economy falters,
stoking negative sentiment for crude oil. []
(Additional reporting by Robert Gibbons in New York, Joe Brock
in London, Florence Tan in Singapore; Editing by Lisa
Shumaker)
