* ECB tender result boosts markets
* Weak U.S. employment figures cap gains
* Coming Up: EIA U.S. inventory report; 1430 GMT
* For a technical view, click: []
(Updates prices, details)
By David Sheppard
LONDON, June 30 (Reuters) - Oil rose above $76 a barrel in
choppy trade on Wednesday, but remained on course for its first
quarterly decline since 2008 as stresses in financial markets
and weak employment numbers weighed on the pace of recovery.
Crude oil prices have fallen 9 percent in the last three
months, posting the first quarterly drop since the peak of the
financial crisis in late 2008.
In early May U.S. crude hit a 19-month high above $87, but
concern about the debt crisis in Europe and the pace of growth
in top consumers the United States and China sapped the early
strength of many raw material markets.
On Wednesday, data from ADP Employer Services showed private
employers in the United States added less than a third of the
jobs expected in June, adding to fears the recovery is slowing
and raising concerns about upcoming U.S. job figures.
[]
U.S. crude for August <CLc1> rose 47 cents to $76.41 at 1400
GMT after slipping as much as 61 cents earlier in the day. ICE
Brent crude <LCOc1> rose 44 cents to $75.88.
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For a graphic on performance across commodity markets in the
last quarter, please click:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
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While concerns about the strength of the recovery linger,
oil prices took some support on Wednesday after tensions over
European banks' funding issues eased. []
Banks borrowed less than expected from a three-month tender
by the European Central Bank (ECB) on Wednesday, reducing fears
they have become too reliant on emergency funding ahead of the
repayment of 442 billion euros in one year loans.
"It's a little bit below our expectations," said Michael
Schubert, an economist at Commerzbank.
"It's far better (for banks) than it would have been if we
had a situation of very strong demand, so it's quite a
satisfying result."
European shares were steady and the euro rose after the
result of the tender, both of which are supportive for oil
prices.
Oil has often tracked equity markets since the recession as
traders bet on signs of recovery, while strength in the euro
against the dollar lowers the relative price of commodities
priced in the U.S. currency.
Oil prices were also helped by an industry report showing
U.S. crude inventories fell by more than expected last week,
boosting the view that demand is rising in the world's largest
energy consumer. []
Hurricane Alex, which the United States said on Tuesday had
forced the shutdown of a quarter of U.S. oil production in the
Gulf of Mexico, was also supportive, but it is now expected to
miss Mexican oil rigs and U.S. oilfields. []
"They will only shut down for a few days, but obviously there
will be an impact on next week's inventory figures," said
Clarence Chu, an energy trader at Hudson Capital Energy in
Singapore.
"It's the hurricane season, but I don't think there is any
potential threat just yet. Damage to oil rigs could change
fundamentals dramatically."
U.S. crude inventories fell 3.4 million barrels in the week
to June 25, industry group the American Petroleum Institute said
on Tuesday, outstripping analyst expectations of a
900,000-barrel draw in the latest Reuters poll. []
Gasoline stocks fell 908,000 barrels, versus analysts'
expectations of a 500,000-barrel draw, but distillates,
including heating oil and diesel, rose 4 million barrels, above
forecasts for a 800,000-barrel gain.
The U.S. Energy Information Administration will publish more
closely-watched government statistics on inventories and
consumption on Wednesday at 1430 GMT. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Keiron Henderson)
