* Dollar slips against the euro after rally in pvs session
* Burgeoning U.S. oil stocks highlight weakness of demand
* Total CEO says price not justified by current fundamentals
(Updates throughout)
By David Sheppard
LONDON, Nov 13 (Reuters) - U.S. crude oil rose above $77 a
barrel on Friday, buoyed by renewed weakness in the U.S. dollar,
but bulging fuel inventories in the United States kept price
gains in check.
By 1000 GMT, U.S crude futures <CLc1> were up 54 cents at
$77.48 a barrel, having fallen by more than $2 in the previous
session. In Asian trade on Friday, prices dipped to $76.00 a
barrel, the lowest level in almost a month.
Brent crude futures <LCOc1> rose 73 cents to $76.75.
Oil fell on Thursday after the U.S. Energy Information
Administration (EIA), the statistical arm of the Department of
Energy, reported crude and product stocks in the world's largest
energy consumer rose by more-than-expected last week.
Market analysts said the 1.8 million rise in U.S. crude oil
stocks and 2.5 million barrel rise in gasoline stocks
highlighted the fact demand remains weak heading into the
Northern Hemisphere winter, with the economic slowdown still
curbing demand for fuel.
"The upside for U.S. crude will remain capped until next
year with persistently sluggish demand from the United States,"
VTB Capital analyst Andrey Kryuchenkov said.
Oil prices have more than doubled since crashing to lows
near $30 a barrel at the peak of the economic crisis, but they
are still nearly 47 percent below their high of $147.27 a barrel
struck in July 2008.
Doubts about the rally continuing have been expressed by
some of the biggest names in the oil industry.
"Today the price of oil may be $70 or $80, tomorrow it may
even be $90," Christophe de Margerie, CEO of French oil major
Total <TOTF.PA>, said after a panel discussion at Columbia
University in New York on Thursday evening.
"But I'll tell you this. If you look at supply and demand,
the price should be lower." []
FUNDAMENTALS vs. DOLLAR
Oil analysts have pointed to weakness in the dollar as one
of the key reasons for this year's move higher in commodities.
Weakness in the greenback makes dollar-priced commodities like
oil and gold attractive as a physical hedge for investors, while
they also become cheaper for holders of other currencies.
The dollar had bounced on Thursday after finding some
support against the euro around the $1.50 mark. But after
rallying almost 1.5 cents in 24 hours, the dollar slipped back
on Friday to around $1.49 against the single currency. []
Gold <XAU=> prices have soared to record highs above $1,120
an ounce due to the dollar's near 25 cent loss against the euro
since March.
Expectations of a strong rebound in energy demand, led by
the emerging economies of China and India, have also encouraged
investment in oil.
China's annual GDP growth rate could reach 10 percent in the
fourth quarter of 2009 as the economic recovery exceeds
expectations, said Fan Jianping, chief economist with the State
Information Centre. []
The International Energy Agency, adviser to 28
industrialised nations, said on Thursday the world would use
more oil in the fourth quarter of this year than in 2008 due to
a rebound in energy demand in Asia.
(Additional reporting by Felicia Loo in Singapore; Editing by
Sue Thomas)
