Oil steadies below $70, market eyes data for direction

                                
 * Oil hovers below $70, investors seek signs of
stabilisation
                                
 * U.S. dollar at 2009 low as risk appetite rises
                                
 By Fayen Wong
                                
 PERTH, Aug 3 (Reuters) - Oil steadied at below $70 a barrel
on Monday, pausing after the previous session's gain of nearly
4 percent, as investors sought more evidence of economic
stabilisation in the U.S. and signs of recovering fuel demand.
                                
 U.S. crude for September <CLc1> edged up 16 cents to $69.61
a barrel by 0111 GMT, adding to gains of $2.51 on Friday that
brought the contract to settle at $69.45.
                                
 London Brent crude <LCOc1> gained 54 cents to $72.24 a
barrel.
                                
 "A lot of the optimism that came after the
better-than-expected U.S. growth data is already priced in and
investors are pausing now and waiting for new directions," said
Ben Westmore, a commodities analyst at the National Bank of
Australia.
                                
 "The U.S. growth number has confirmed that the worst is
behind us and the focus now is to find out how quick the
recovery will be."
                                
 Analysts said a weak U.S. dollar, which fell broadly on
Monday and hit its lowest point this year against a basket of
currencies amid increased risk appetite, would also offer
support to oil prices. [USD/]
                                
 U.S. gross domestic product (GDP) fell at a 1.0 percent
annual rate, the Commerce Department said, declining for the
fourth consecutive quarter, but below analysts expectations'
for a 1.5 percent drop. [ID:nN30365410]
                                
 However, consumer spending, which accounts for more than
two-thirds of U.S. economic activity, fell 1.2 percent in the
second quarter, after rising 0.6 percent in the previous
quarter.
                                
 Analysts said investors in Asia are also taking a cautious
stance ahead of more corporate earnings reports and after Wall
Street posted only modest gains despite positive U.S. GDP data.
                                
 Still, Wall Street may have momentum on its side this week
as the S&P 500 tries to pierce the 1,000 level, but the rally's
staying power will depend on whether U.S. data and corporate
earnings provide more signs of economic stabilization. [.N]
                                
 Amongst data that will be closely watched are: U.S. ISM
manufacturing data for July due later on Monday, while U.S.
consumer spending for June, pending home sales,
non-manufacturing data and weekly jobless claims to be released
later in the week will also provide clues on how the U.S.
economy was faring.
                                
 Fuelled by positive economic data and rallying equities
markets, oil prices rose about 2 percent last week -- their
third straight week of gains -- which helped to reverse steep
losses posted in the middle of the month and brought July's
monthly loss to a marginal 0.6 percent.
                                
 Separately, the United Arab Emirates halted crude exports
from its Jebel Dhanna oil terminal late on Friday, and from its
Jebel Ali facility on Sunday, because of a sandstorm, a
shipping source said. [ID:nL2408760]
                                
 Iran's OPEC governor said crude prices were expected to
reach $80 a barrel by January, the oil ministry website
reported on Sunday, adding to earlier comments that some OPEC
members may demand in its next meeting further cuts to crude
output if prices continued to drop. [ID:nL2450169]
                                
 Crude oil speculators on the New York Mercantile Exchange
increased their net long positions in the week to July 28,
according to data from the Commodity Futures Trading Commission
released on Friday. [ID:nN31444054]
 (Reporting by Fayen Wong; Editing by Clarence Fernandez)