* G7, European leaders to meet to halt Greek debt crisis
* Oil still about 11 percent down from 19-month high
* Coming Up: U.S. non-farm payrolls 1230 GMT
(Recasts throughout; previous SINGAPORE)
By Ikuko Kurahone
LONDON, May 7 (Reuters) - Oil rose toward $78 a barrel on
Friday, trimming an 11 percent loss from a 19-month high hit
earlier this week, as international leaders prepared to meet to
try to contain Greece's debt crisis.
Some support came from an expected improvement in jobs data
later in the day from top oil consumer the U.S., analysts said.
U.S. crude oil futures <CLc1> rose 65 cents to $77.76 a
barrel by 0945 GMT. London Brent crude <LCOc1> rose 52 cents to
$80.35 a barrel.
"The oil market is going to be traded based on economic
inputs. Today U.S. jobs data is expected to show some
improvement," Olivier Jakob with Petromatrix said.
U.S. jobs figures to be released at 1230 GMT are likely to
show 200,000 jobs were added in April, up from 162,000 in March.
[].
The Group of Seven finance ministers said they would discuss
the Greek bailout later on Friday after Federal Reserve
officials expressed concern and the Whitehouse said President
Barack Obama was watching developments closely.
Euro zone leaders also meet later in the day in a special
summit, while Germany's parliament is to vote on the 110 billion
euro ($140 billion) bailout later in the day. []
OIL DEMAND
Actual oil demand so far has not recovered from last year's
fall strongly enough to drive prices higher and concern over the
Greek debt crisis would haunt the global market, Jakob said.
"All markets are down this week on concerns over Greece and
Europe. If the whole of the euro zone goes into trouble, it may
somehow offset potential growth in the United States and Asia,
which will be negative input to oil prices," Jakob said.
Oil has fallen from above $87 hit on Monday, the highest
since October 2008, due to concerns that the Greek crisis might
spill over to other countries such as Spain and Portugal,
putting the whole euro zone economy in trouble.
Global equity markets have also fallen this week, while
market volatility index <.VIX> and gold have risen. [][]
The National Australia Bank pointed out that U.S. official
weekly oil data had shown a rise in refinery run rates, which
may not necessarily be driven by strong demand in the United
States but a potential increase in fuel inventories.
"While this reflects refiners responding to higher margins
or expectations of future consumption, there appears to have
been little pickup in demand for oil products," the bank said in
a research note.
"Consequently, the effect of increasing refinery activity
has been to transfer oil inventories from crude to oil products,
giving a false indication of an improvement in fundamental
conditions in the U.S."
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For graphics for refinery utilisation rates in the United
States and Europe, click on
http://graphics.thomsonreuters.com/10/OIL_RFNUE0510.gif
For a chart of oil's correlation with risk aversion, see:
http://graphics.thomsonreuters.com/gfx/NT_20100705110504.jpg
For a technical chart, see:
http://graphics.thomsonreuters.com/gfx/WT_20100705085001.jpg
For graphic on oil-dollar correlation, click on:
http://graphics.thomsonreuters.com/gfx/RSW_20100705104744.jpg
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(Additional reporting by Florence Tan in Singapore; editing by
James Jukwey)
