* Oil edges up after three-day losing streak
* China's factory output and investment miss forecast
* U.S. inventory data to show 1.5 mln bls draw in gasoline
* EIA could lift world oil demand forecast in Aug report
(Updates prices, adds Chinese retail sales)
By Maryelle Demongeot
SINGAPORE, Aug 11 (Reuters) - Oil rose below $71 a barrel
on Tuesday, ending a three-day losing streak ahead of U.S. data
expected to show a fall in gasoline stocks, with
weaker-than-expected Chinese economic data acting as a drag.
China reported below-forecast growth in factory output and
investment on Tuesday, underlining why senior officials keep
reminding markets that recovery in the world's third-largest
economy is not yet on solid ground. []
But the slowing growth in factory output didn't seem to
dampen the country's demand for crude oil imports, which jumped
42 percent on year in July to a record 4.62 million barrels per
day as refiners boosted exports and cashed in on retail prices
hikes in June. []
Other data showed exports perked up in July, when compared
to June, and retail sales passed expectations with a speedy
15.2 percent gain.
U.S. light crude for September delivery <CLc1> rose 46
cents to $71.06 a barrel by 0636 GMT, having settled down 33
cents on Monday at $70.60 a barrel as it tracked Wall Street
losses.
London Brent crude <LCOc1> rose 34 cents to $73.84 a
barrel.
"The Chinese data is slightly disappointing but the focus
remains on a recovery in Western oil demand. The U.S. is the
world's largest oil consumer and tomorrow's oil data will be
pretty important," said Toby Hassall, an analyst with CWA
Global Markets in Australia.
A Reuters poll of analysts called a steep 1.5 million
barrels drawdown in U.S. gasoline stocks in the week ended Aug.
7, deeper than the previous week's 200,000 barrels fall.
[]
But the poll also predicted a bearish 800,000-barrels rise
in crude stocks on higher imports and lower refinery
utilization.
The American Petroleum Institute will release a first set
of data at 2030 GMT, to be followed on Wednesday by data from
the Energy Information Administration (EIA).
Oil has more than doubled from this winter's low $30s but
high inventories worldwide have kept prices in check as they
suggest still weak demand.
But a slightly brighter economic outlook may prompt the EIA
to again raise its world oil demand forecasts when it releases
its August report at 1600 GMT, adding to the past two monthly
reports' higher forecasts.
In its July outlook, the EIA raised its 2009 global oil
demand projection to 83.85 million barrels per day from the
previous forecast of 83.68 million bpd -- still well below 2008
levels of 85.41 million bpd. []
OPEC will also release its monthly oil report on Tuesday,
followed by the International Energy Agency on Wednesday.
Traders will also watch the policy-setting Federal Open Market
Committee (FOMC) meeting on Tuesday and Wednesday for any
action regarding interest rates. []
The worst U.S. recession since the Great Depression will
probably end in the third quarter, but uncertainty exists over
the speed and duration of the economic recovery, according to
the most recent survey of private economists. []
(Editing by Michael Urquhart)
