* Government data shows a fall in U.S. crude, product stocks
* Dollar slips against basket of currencies <.DXY>
* Technicals suggest price rise to $78.80 []
(Updates after EIA inventory data, adds quote)
By Christopher Johnson
LONDON, Sept 29 (Reuters) - Oil hovered above $76 a barrel
on Wednesday, paring losses after U.S. government data showed
crude and oil products stocks fell last week.
The dollar slipped against a basket of major currencies
<.DXY> after poor U.S. economic data on Tuesday reinforced
expectations the U.S. Federal Reserve would take more action to
help the struggling economy. []
Commodities and energy prices tend to move inversely to the
dollar because they are priced in the U.S. currency on
international markets.
U.S. crude for November <CLc1> was down 8 cents at $76.10 a
barrel by 1502 GMT. Prices had been down around 50 cents prior
to the U.S. inventory report. ICE Brent for November <LCOc1> was
up 14 cents to $78.85.
The U.S. Energy Information Administration said crude stocks
fell 475,000 barrels last week, more than the forecast for
stocks to be down 300,000 barrels. []
The EIA said gasoline stocks fell 3.47 million barrels, when
a build of more than half a million barrels had been expected.
Distillate stocks fell 1.27 million barrels, against a forecast
for stocks to have risen 400,000 barrels.
"Despite the EIA report of stock draws across the board,
there is still a decent amount of supply around, after recent
weekly builds," said Richard Ilczyszyn, senior market strategist
at Lind-Waldock in Chicago.
"Crude futures are pinned in a range, with resistance at the
50-day moving average at $77.30 and the low at $71.50. Until we
break out of this range, prices will move sideways."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For graphic of the relative price performance of key
commodities so far this year:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
CHINA
HSBC's China Purchasing Managers' Index hit a five-month
high in September, pointing to renewed, though moderate,
momentum in the vast industrial sector that is the backbone of
China's economy. []
China is the world's second-largest user of oil and its
consumption has been supporting energy prices this year despite
only sluggish growth in the United States and Europe.
Oil prices have remained relatively stable so far this year,
trading for two-thirds of 2010 between $70 and $80 per barrel, a
range that oil producers in the Organization of the Petroleum
Exporting Countries have said they favour.
OPEC meets in Vienna next month and is expected to keep its
oil production targets unchanged.
OPEC crude oil supply has fallen so far this month to the
lowest level since November 2009 due to reduced output from
Angola and smaller declines in the United Arab Emirates and
Iran, a Reuters survey showed on Tuesday. []
Iran's OPEC governor expects oil prices to reach $80 per
barrel by the start of winter, assuming there are no major
changes in the market, news agency ILNA reported on Wednesday.
"By the beginning of the cold season an increase in the oil
price to around $80 is possible," Mohammad Ali Khatibi was
quoted as saying. []
(Additional reporting by Joe Brock; editing by Anthony Barker)
