* Euro zone GDP grows at fastest pace in over three years
* OPEC monthly report signals slow 2011 demand growth
* U.S. retail sales up slightly in July
(Adds details, updates prices, repeats with no changes to
text)
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 were partly eclipsed by a drop in stock markets that
reinforced doubts on the outlook for global fuel demand.
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 and U.S stocks extended losses, in a move that
reinforced the strong correlation between the two asset classes.
[] []
By 1328 GMT, U.S. crude prices <CLc1> for September were
down 9 cents at $75.64 a barrel after rising more than $1.
ICE Brent crude <LCOc1> was down 17 cents at $75.35.
"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.
The strong European data on Friday has helped set a floor
beneath prices at least temporarily, analysts said.
Prices moved sideways after The Organization of the
Petroleum Exporting Countries (OPEC) said demand for oil would
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. []
U.S. retail sales rose in July in a hopeful sign for the
economy, but the gains were concentrated in auto and gasoline
station sales, suggesting underlying momentum in consumer
spending remained tame. []
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For graphics on the technical outlook and on correlations,
please see:
http://graphics.thomsonreuters.com/WT/20101308090217.jpg
http://graphics.thomsonreuters.com/gfx/ABE_20100408121347.jpg
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STILL CAUTIOUS
Front-month crude was on course for a nearly 6 percent fall
for the week, and analysts expected it to stay below the $80 a
barrel benchmark.
Oil prices were in a $70-$80 a barrel range, where they have
mostly traded since June, barring a brief foray above $80 in
August.
"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.
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. []
(Additional reporting by Florence Tan in Singapore; editing by
Jane Baird)
