* Oil touches highest since Dec. 4
* Inventory drops in U.S., Europe and Asia supports
* Equity markets higher; eyes on U.S. jobless data
(Previous SINGAPORE, update throughout)
By Ikuko Kurahone
LONDON, Dec 24 (Reuters) - Oil rose for a fourth day on
Thursday, briefly touching a three-week high, as support came
from equity gains and falls in oil inventories in key consumer
markets.
By 0948 GMT, U.S. crude oil futures <CLc1> were trading 38
cents higher at $77.05 GMT, having hit $77.48, the highest price
since Dec. 4.
ICE Brent crude futures <LCOc1> gained 21 cents to $75.63.
On Wednesday, oil prices rose more than 3 percent, the
biggest one day percentage gain in about five weeks, after
weekly data form the U.S. Energy Information Administration
(EIA) data showed an larger-than-expected fall in crude
inventories in the United States over the past week. []
Inventories of key oil products, such as gasoline and
heating oil, also fell in the world's top consumer.
The U.S. data helped switch market momentum to an up trend
this week following a slide to below $69 after a period of
narrow range trading earlier in December, investors said.
"The EIA data were much more positive than the market had
expected, so many factors are now quite bullish," he said.
"I think the market is heading towards the upside, probably
will hold the level by the end of the year," said Tetsu Emori, a
fund manager at Tokyo-based Astmax Co Ltd.
Oil inventories have fallen elsewhere in the world over the
past week.
Gasoline and gas oil inventories held in independent
storage in Europe's oil hub also fell over the past week on
increased demand ahead of the holidays, Dutch oil analyst Pieter
Kulsen said on Wednesday. []
In Japan, the world's third-largest oil user, commercial
crude stocks eased last week from an eight-week high hit the
week before. []
Support came from rallies in the equity market.
Europe's leading share index the FTSEurofirst 300 index
<> rose at the opening, gaining for the fourth session.
Asian shares rose, with Tokyo shares hitting their highest in
three months. [][]
The dollar eased from a thee month high, while gold bounced
from a seven week low. []
Later on Thursday, investor eyes will turn to durable goods
figures and weekly U.S. jobless claims later as the market tries
to assess if a recent improvement in monthly payrolls will be
sustained and what that might mean for the timing of U.S.
interest rate increases.
(Additional reporting by Judy Hua in Singapore, editing by
Keiron Henderson)
