* New U.S. housing starts and permits jump in June
* Oil rises for 5th day; 1st weekly rise in a month
* Violence in Iran, tropical wave in Atlantic spur buying
* China June refinery output at new record
(Changes dateline to NEW YORK. Updates with analyst comment,
equities, currency data, adds Iran protests.)
By Joshua Schneyer
NEW YORK, July 17 (Reuters) - Oil rose above $63 a barrel
on Friday, on track for its first weekly gain in a month, after
U.S. housing data sparked optimism that a battered sector of
the economy may be primed for recovery.
Oil rose for a fifth day and was on track for a gain of 5.6
percent on the week, partially reversing its 10 percent plunge
last week.
A U.S. government report Friday showed construction of new
homes and building permits in the United States rose more than
expected in June, signaling a potential economic recovery.
The housing data Friday added to better-than-expected U.S.
corporate earnings and robust Chinese economic growth figures
earlier this week.
Renewed, violent protests over contested presidential
elections in crude supplier Iran on Friday [], and
a tropical wave in the Central Atlantic that posed a small
threat of becoming a hurricane [], also spurred
oil buying ahead of the weekend.
"Oil is rebounding because there's a sense we have probably
overplayed pessimism about the economy lately, and prices had
fallen too far," said Phil Flynn, an analyst at PFGBest
Research in Chicago.
"Increased tension in Iran and a tropical wave (in the
Atlantic) are also considerations. People don't want to be
caught short over the weekend."
U.S. crude oil for August delivery <CLc1> was up $1.47 to
$63.49 a barrel by 1625 GMT. London Brent crude <LCOc1> for
September rose $1.60 to $65.35.
Oil rose in spite of a 0.3 percent strengthening of the
U.S. dollar against a basket of foreign currencies <.DXY>. A
strengthening dollar often weakens oil prices, which had fallen
in earlier trade, since it makes crude more expensive in most
regions. The dollar pared some of its earlier gains, after
rising 0.4 percent earlier.
Global stocks rose on Friday, by 0.7 percent, and touched a
one-month high in earlier trade []. Bank of America posted
lower earnings but Citibank rose after a one-off gain to return
a profit, following strong profits from banking peers this
week, which pushed equities higher.
In China, refiners in the world's No.2 energy consumer
boosted production by 6 percent in June to a record high after
a rise in domestic motor fuel prices aided margins, although
higher inventories and rising exports suggested domestic demand
was lagging.
Data earlier this week showed Chinese growth sped up to hit
7.9 percent in the second-quarter, fueled by state spending and
bank lending. []
Oil prices are down $7 a barrel since early July, partly
reversing last quarter's 40 percent surge on concerns over
energy demand. In the United States, distillate inventories hit
a fresh 25-year high last week, while refiners have been
running at lower-than-normal rates for the summer season.
(Reporting by Christopher Johnson in London, Robert Gibbons
in New York and Fayen Wong in Perth; editing by Michael Kahn
and Lisa Shumaker)
