* Oil retreats from 8-week intraday high above $83
* OPEC officials say prices within their desired range
* Coming up: Weekly U.S. jobless claims (1330 GMT)
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, March 11 (Reuters) - Oil fell below $82 on
Thursday from an eight-week high a day ago on expectations that
OPEC will pump above quotas in the second quarter and as
Chinese economic data rekindled concern of tighter monetary
policy.
But falling fuel inventories in the United States and the
first few weekly gains in total demand in one-and-a-half years
have bolstered the view that the market will absorb ample
supplies from OPEC as Chinese imports soar. []
[].
Ministers from the Organisation of the Petroleum Exporting
Countries, or OPEC, meet in Vienna on March 17 to discuss
production policy. Officials from member countries including
Algeria, Kuwait, and Angola have said this week they do not
expect a change in quotas because prices are within their
desired range. []
"You are going to see $75 to $85 until OPEC changes their
views," said Peter McGuire, managing director of Commodity
Warrants Australia in Sydney. "Given that the U.S. dollar is
appreciating, they are relatively content with what they are
receiving for their oil."
U.S. crude for April <CLc1> slid 52 cents to $81.57 a
barrel by 0700 GMT, after touching $83.03 on Wednesday, the
highest intra-day price since Jan. 11, when oil hit a 15-month
high of $83.95. London ICE April Brent <LCOc1> fell 48 cents to
$80.
The dollar edged higher against a basket of major
currencies on Thursday, and is up almost 8 percent since the
end of November.
A stronger dollar boosts the purchasing power of oil
exporters, including OPEC members. A weaker greenback usually
supports oil prices as it makes dollar-denominated commodities
such as oil less expensive for holders of other currencies.
[]
Asian stocks fell on Thursday as investors worried strong
loan growth and quickening inflation in China would spur
Beijing to tighten monetary policy sooner than expected.
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AHEAD OF THE MEETING
OPEC will keep oil output targets on hold this month but
could raise production later this year as the world recovers
from recession, pushing up demand for fuel, a Reuters poll
showed on Monday. []
The group's output climbed to a 14-month high in February,
according to a Reuters survey, as producers complied with only
53 percent of output cuts of 4.2 million barrels per day agreed
in December 2008. []
Saudi Arabia, OPEC's top producer, will provide full
contracted volumes to most Asian buyers in April, except for a
major refiner in northeast Asia. []
Output from the organisation is bloating U.S. crude
inventories. They have climbed for the past six weeks, showing
a 1.4-million-barrel gain to 343 million barrels in the week to
March 5, the Energy Information Administration (EIA) said on
Wednesday. []
The nation's gasoline stockpiles showed a surprise decrease
of 2.9 million barrels, the EIA said, while distillate stocks
including heating oil and diesel fell by 2.2 million barrels,
down for the sixth straight week.
U.S. total oil product demand over the past four weeks was
19.41 million bpd, up 3.8 percent from a year ago. China's
imports of crude oil in February rose to their second-highest
on record on a daily basis. []
Oil has traded between $69 and $84 for the past few months,
but has been very volatile within that range as evidence of a
rebound in world economic activity clashed against oversupplied
crude markets.
"It's been range-bound volatile market, and if you get to
trade on that, it's a great way to pick up some money from
moves of $3 or $4," McGuire said..
(Editing by Ed Lane)
