SINGAPORE, Oct 15 (Reuters) - Oil fell for a second day on
Friday as the dollar bounced from 2010 lows, but was still
headed for a third consecutive weekly close above $80 as
expectations of economic stimulus kept commodities among
investors' top picks.
U.S. crude for November <CLc1> fell 14 cents to $82.55 a
barrel at 0048 GMT, less than $2 from last week's five-month
peak of $84.43, while December ICE Brent <LCOc1> slid 27 cents
to $83.93. November Brent expired on Thursday.
Prices vacillated on Thursday, briefly topping $84 for the
third time in seven sessions, before succumbing to falling
equity markets amid a mix of factors, including OPEC's decision
to maintain production quotas and French port and refinery
strikes.
Oil prices broke out of this year's $70 to $80 range last
month as traders anticipated a fresh round of U.S. Federal
Reserve monetary easing that would boost growth prospects and
cut unemployment, but are now stalling around $80 to $85 a
barrel as the market weighs immediate economic conditions
against future policy moves.
FUNDAMENTALS
* OPEC on Thursday kept intact a supply policy that has
served it well for nearly two years and set aside concerns a
weak dollar could drive the oil price too high for a fragile
world economy. []
* New claims for jobless benefits in the U.S. unexpectedly
rose last week, a report showed on Thurday, weighing on crude
prices even as the data bolstered the case for the central bank
to pump more money into the economy as soon as next month.
[]
* U.S. crude inventories dipped by 416,000 barrels last
week, the U.S. Energy Information Administration said on
Thursday, far below the 4.1-million-barrel drawdown reported by
the American Petroleum Institute on Wednesday, but against the
forecast in a Reuters poll for a 1.1-million-barrel increase.
* Gasoline stocks fell by 1.8 million barrels, more than
expected, while distillate supplies, which include heating oil
and diesel, dropped by 255,000 barrels, less than forecast.
* The oil market was awaiting Friday's U.S. government data
on consumer prices last month. Also scheduled were data on
retail sales in September and a preliminary reading of consumer
sentiment so far this month.
* Also on tap on Friday was a speech by Fed Chairman Ben
Bernanke in Boston that could provide clues on what monetary
authorities are planning to do next.
* A strike at Fos Lavera port in France entered its 18th
day on Thursday -- the longest at the key Mediterranean oil
port -- while workers at most refineries were also on strike as
part of stoppages across the country that began on Tuesday over
government pension reforms. []
MARKETS NEWS
* The U.S. dollar slid to a 2010 low against a basket of
currencies on Thursday after Singapore let its currency rise
but analysts saw increasing chances of a dollar rebound with
negative sentiment so high. []
* Japan's Nikkei average opened down 0.3 percent on Friday
as investors locked in profits ahead of the weekend after
gaining nearly 2 percent the previous day. []
* Industrial metals climbed to their highest levels in
decades and gold set a record peak on Thursday, as the dollar
slid to its 2010 trough. []
DATA/EVENTS
* The following data is expected on Friday:
- 0430 Japan Industrial output rev Aug <JPIP4=ECI>
- 0900 Eurozone Inflation, final yy Sep <EUHICY=ECI>
- 0900 Eurozone Eurostat trade Aug <EUTBAL=ECI>
- 1215 U.S. Fed Chairman Bernanke speaks on policy
- 1230 U.S. Consumer Price Index Sep <USCPN=ECI>
- 1230 U.S. Retail sales mm Sep <USRSL=ECI>
- 1355 U.S. Michigan sentiment index Oct-P <USMN=ECI>
(Reporting by Alejandro Barbajosa; Editing by Clarence
Fernandez)
