* Euro zone GDP grows at fastest pace in over three years
* OPEC monthly report due at 1035 GMT
* Coming Up: U.S. CPI, retail sales at 1230 GMT
(Updates throughout, previous SINGAPORE)
By Emma Farge
LONDON, Aug 13 (Reuters) - Oil rose towards $76 a barrel on
Thursday after a three-day price slide as robust euro zone
growth data and buoyant stock markets helped allay doubts on the
outlook for global fuel demand.
Euro zone gross domestic product (GDP) grew at its fastest
pace in more than three years in the second quarter, boosted by
strong performances in Germany and France. []
[]
U.S. crude prices <CLc1> for September was up 5 cents to
$75.79 a barrel by 1020 GMT after earlier rising more than $1.
ICE Brent crude <LCOc1> was up 18 cents at $75.70.
"There is a global recovery under way, even if there are
still patches of weakness, and the European numbers are
supporting," said Barclays Capital oil analyst Amrita Sen.
One of the key factors capping oil price rallies this year
has been doubts about the pace of western economic recovery as
European governments have rolled out austerity programmes
following the debt crisis.
While it has long been acknowledged that European demand is
marginal for the oil price, analysts have worried about
potential knock-on effects for key growth areas such as Asia.
The strong European data on Friday has helped lift
sentiment, at least in the short term, analysts said.
"Europe was meant to be the weakest region in terms of oil
demand growth but I do think it is surprising to the upside,"
said Sen.
European shares rose in early trade on Friday and this
helped the oil rally, reinforcing the strong correlation between
the two asset classes. []
The euro rose 0.3 percent against the dollar in early trade
on Friday. A stronger euro tends to boost oil as it makes
dollar-denominated commodities more attractive. []
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STILL CAUTIOUS
Even accounting for Friday's gains, front-month crude is
still heading for a near 6 percent fall this week and analysts
expect it to stay below the $80 a barrel benchmark.
Analysts were cautious ahead of U.S. retail sales for July
due at 1230 GMT which should give an insight into the likely
pace of demand growth in the world's top oil consumer.
"Stronger-than-expected numbers could counteract some of the
recent fears of a slowdown and lead to a modest bounce in most
markets, but given the recent patterns evident in the data, odds
favour another disappointing report," said Edward Meir, senior
commodity analyst at MF Global.
In the previous session, the number of people filing new
jobless claims in the United States unexpectedly rose to its
highest level in close to six months, a fresh signal of sluggish
economic recovery. []
Stocks of oil products in the U.S. including gasoline rose
last week even at the height of the summer driving season,
according to the U.S. Energy Information Administration. []
The Organization of the Petroleum Exporting Countries (OPEC)
will release its monthly oil market report on supply and demand
at 1035 GMT.
This follows a monthly forecast from the International
Energy Agency's on Wednesday which revised upwards the 2010
global oil demand growth figure but pointed to the risk of
economic weakness. []
(Additional reporting by Florence Tan in Singapore; editing by
James Jukwey)
