* Euro zone GDP grows at fastest pace in over three years
* OPEC monthly report signals slow 2011 demand growth
* Coming Up: U.S. CPI, retail sales at 1230 GMT
(Recasts, updates prices, adds OPEC)
By Emma Farge
LONDON, Aug 13 (Reuters) - Oil hovered near $76 a barrel on
Thursday after a three-day price slide as robust euro zone
growth data was partly eclipsed by lingering doubts on the
outlook for global fuel demand after equities turned negative.
Early in the session, prices rallied after news that 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. []
[]
Prices later retreated after European stock markets turned
negative, in a move that reinforced the strong correlation
between the two asset classes. []
By 1200 GMT, U.S. crude prices <CLc1> for September were up
7 cents at $75.81 a barrel after earlier rising more than $1.
ICE Brent crude <LCOc1> was up 12 cents at $75.64.
Prices moved sideways after The Organization of the
Petroleum Exporting Countries (OPEC) said demand for oil will
continue to grow slowly in 2011, when world economic expansion
is projected to be slightly lower than this year's, leaving the
current supply overhang intact. []
"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 set a floor
beneath prices, at least temporarily, analysts said.
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STILL CAUTIOUS
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.
"The market is very much in '08 mode when it was doubting
aspects of the recovery. There is an element of suspicion about
whether it's sustainable," said Sen.
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.
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. []
"Stronger-than-expected (retail) 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.
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. []
(Additional reporting by Florence Tan in Singapore; editing by
James Jukwey)
