* EIA data shows jump in gasoline, distillate stocks
* For a technical view, click: []
* U.S. weekly jobless claims unexpectedly rise
(Updates prices, adds data)
By Emma Farge
LONDON, Aug 5 (Reuters) - Oil prices fell for a second day
on Thursday towards $82 a barrel after a jump in U.S. jobless
claims and rising oil product inventories stoked doubts about
the pace of fuel demand recovery in the top consumer.
U.S. stockpiles of gasoline and distillate fuels extended a
series of builds in July, adding to the supply overhang despite
the peak summer travel season which typically boosts demand for
transport fuels like gasoline and jet fuel. []
Prices extended losses after new U.S. claims for
unemployment benefits unexpectedly rose last week, underscoring
a weak labour market and the fragile economic recovery.
[]
By 1246 GMT, U.S. crude for September <CLc1> fell 46 cents
to $82.01 a barrel.
Prices rebounded from an intraday low of $81.67 a barrel on
the back of a weaker dollar -- making oil more affordable for
buyers using other currencies.
ICE Brent <LCOc1> was down 62 cents at $81.58 a barrel by
the same time.
Energy Information Administration data showed distillate
stocks rose 2.17 million barrels and gasoline inventories jumped
729,000 barrels, offsetting the potentially bullish impact of a
near 3 million-barrel drop in crude stocks.
"The statistics that we got were pretty weak as the drop in
crude was due to the impact of Bonnie and not an increase in
demand," said oil analyst Christophe Barret at Credit Agricole
CIB, referring to the precautionary shutdown of oil production
in the U.S. Gulf due to the tropical storm last month.
"When you look at what happened on distillates and gasoline
it's not very bright with demand near to recession levels," said
Barret, adding demand was likely to weaken further in the third
quarter.
U.S. stock index futures extended losses on Thursday and
this also weighed on oil prices in a further sign of the close
correlation between oil and equities. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on U.S. weekly oil inventories, see:
http://graphics.thomsonreuters.com/Flash/DOEAug4.swf
For a graphic of oil's returning currency correlation:
http://graphics.thomsonreuters.com/gfx/ABE_20100408121347.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
BREAK ABOVE $80
Oil prices on Monday ended range-bound trade by breaching
the key psychological barrier of $80 a barrel and have since
risen to a three-month high of near $83 a barrel.
Iran President Mahmoud Ahmadinejad was unharmed after a
homemade explosive went off near his motorcade during his visit
to the western city of Hamadan on Wednesday. []
Another supportive factor is the potential for further
supply disruptions in the Gulf of Mexico after the Colorado
State University maintained its forecast for 10 hurricanes, five
of them expected to be major. []
While some say the return of a geopolitical premium in the
oil price is partly responsible for the rally, many analysts
think prices have run ahead of oil market fundamentals.
They expect future direction to mainly be determined by
macroeconomic factors which should give a better indication of
the demand picture in the United States.
Monthly data showed companies hired more workers in July but
the gains were too slow to cut unemployment and spur the economy
significantly, reports showed on Wednesday. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Sue Thomas)
