* Likely weaker U.S. GDP pressures oil prices
* European equities turn positive ahead of data
* Coming Up: Revised U.S. GDP 2nd quarter; 1230 GMT
(Adds quote, recasts, updates prices)
By Joe Brock
LONDON, Aug 27 (Reuters) - Oil edged higher towards $74 a
barrel on Friday as investors geared up for the latest measure
of economic recovery in the world's largest fuel consumer.
The U.S. government is expected to revise second-quarter
gross domestic product growth lower on Friday to an annual pace
of 1.4 percent from 2.4 percent, a Reuters survey shows, in what
would be another signal of lacklustre economic recovery.
U.S. crude for delivery in October <Wc1> rose 33 cents to
$73.69 a barrel by 1102 GMT, after touching an intraday trough
of $70.76 on Wednesday, the lowest price since early June.
Prices have slid about $10 from a peak near $83 on Aug. 4.
October ICE Brent <LCOc1> rose 57 cents to $75.59.
"We're trading at the lower end of the $70-80 range, and
that may be causing some bargain hunting," said Eugen Weinberg,
an oil analyst at Frankfurt-based Commerzbank.
"Markets are definitely waiting for the U.S. GDP and
confidence data and the market will be looking at how U.S.
equity markets react after the data," Weinberg added.
European equity markets reversed earlier losses, reflecting
optimistic sentiment ahead of the U.S. data.
U.S. front-month crude rose by more than 1 percent on
Thursday, boosted by a positive U.S. jobs report.
Although new U.S. jobless claims fell by more than expected
last week, they were too high to signal a shift in a weak labour
market that is constraining economic growth. []
GROWTH CONCERNS
Later on Friday in a speech to fellow central bankers, U.S.
Federal Reserve Chairman Ben Bernanke is likely to discuss the
uncertain prospects for the economy but is not expected to give
many clues about whether the central bank will pump in more cash
to keep the recovery going. []
Weakness in the consumer sector has slowed energy demand
growth in the United States, sending the nation's total
petroleum inventories to their highest since weekly records
began in 1990.
Bloated U.S. inventories are depressing prices of benchmark
West Texas Intermediate crude relative to North Sea Brent. The
premium of front-month Brent futures over front-month WTI jumped
to as high as $1.80 on Thursday, the widest since early June,
and then receded to about $1.65 on Friday.
Tropical Storm Earl in the eastern Atlantic Ocean continued
to move westward on Thursday, with the U.S. National Hurricane
Center expecting the system to become the season's third
hurricane by Saturday. []
Early computer models still show the storm moving west and
northwest, away from key oil and gas producing areas in the Gulf
of Mexico. Hurricane Danielle, which strengthened to Category 3,
was also expected to stay in the Atlantic. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Jane Baird)
