UPDATE 6-Oil slips toward $79 on weak economic data

                                
 * U.S. retail sales down, jobless claims up
                                
 * U.S. crude, distillates stocks rise - EIA
                                
 * Prices in range between $75 and $85 a barrel
 (Recasts, updates prices, changes dateline from LONDON)
                                
 By Edward McAllister
                                
 NEW YORK, Jan 14 (Reuters) - Oil prices slipped toward $79
a barrel on Thursday, in a fourth straight session of losses,
as weak economic signals spurred fears of a sluggish rebound in
energy demand in the United States.
                                
 U.S. retail sales fell 0.3 percent last month, the first
decline in three months, according to the Commerce Department,
while Labor Department data showed more people sought jobless
benefits last week. [ID:nN14168822]
                                
 "Some of the poor economic data is weighing on the market.
With yesterday's bearish inventory report and signs that there
is nothing very exciting on the economic front, the market is
starting to retreat down to yesterday's lows," said Gene
McGillian, analyst at Tradition Energy in Stamford,
Connecticut.
                                
 U.S. crude for February delivery <CLc1> fell 28 cents to
$79.37 a barrel by 11:26 a.m. EST (1626 GMT), after touching a
2010 low of $78.37 on Wednesday. In London, Brent crude for
February <LC0c1> fell 41 cents to $77.90 a barrel ahead of its
expiry later in the day.
                                
 U.S. crude oil stocks rose by a larger-than-expected 3.7
million barrels last week, Energy Information Administration
data showed on Wednesday. And, while heating oil stocks fell by
1.1 million barrels, stocks for the broader category known as
distillates still rose by 1.4 million barrels. [EIA/S]
                                
 U.S. economic activity is now at a low level but is showing
signs of modest improvement, the Federal Reserve said on
Wednesday, in remarks seen as reinforcing the prevailing view
that oil demand will grow in 2010. [ID:nN13227279]
                                
 Early this month, oil prices rallied to 15-month highs near
$84 a barrel as freezing weather across much of the Northern
Hemisphere boosted heating demand. Prices then fell, partly on
a surprise jump in U.S. distillate stocks, including heating
oil, and a rise in crude oil inventories.
                                
 Some traders chose to take advantage of Wednesday's price
dip by covering short positions and this also helped boost
prices back to near $80 a barrel on Thursday, analysts said.
                                
 "Prices are moving in a $75-$85 range. It was very good
timing to buy back the market," said Ken Hasegawa, a commodity
derivatives manager at brokerage Newedge in Japan.
                                
 CFTC
                                
 Later on Thursday, the top U.S. futures regulator was to
unveil long-awaited proposals aimed at barring manipulators
from high-flying energy markets, but the agency is expected to
tread lightly with its new regulations, at least initially.
[ID:nN13222813]
                                
 The Commodity Futures Trading Commission was expected to
make a decision on whether to adopt a proposed rule on position
limits in energy markets at 1 p.m. EST.
                                
 The European Union's nominee for chief financial watchdog
said on Wednesday that speculation in commodity derivatives has
been "scandalous" and needs to be regulated carefully.
[ID:nLDE60D0ZH]
 (Additional reporting by Emma Farge in London, Alejandro
Barbajosa in Singapore; Editing by Walter Bagley)