* U.S. crude earlier touched 2-1/2 year high of $113.70/bbl
* Lower North Sea supplies curb losses on Brent
* Coming Up: U.S. GDP preliminary Q1; 1230 GMT
(Recasts, adds analyst quote, details)
By Emma Farge and Caroline Copley
LONDON, April 28 (Reuters) - Oil prices slid from earlier
highs on Thursday as prospects for slower growth in the world's
top economy dampened sentiment, outweighing a sliding dollar and
signs of lower North Sea supplies.
U.S. crude for June <CLc1> fell four cents to $112.72 a
barrel by 1018 GMT, after earlier touching the highest in 2-1/2
years of $113.70 a barrel. Brent crude futures fell 1 cent to
$125.12 a barrel.
"I think there are some concerns about how the U.S. GDP will
come out for Q1. The dollar is still weak, while oil is falling,
so I think it's demand driven. It's the uncertainty about the
demand from the U.S.," said oil analyst Thorbjorn Bak Jensen at
Global Risk Management.
Federal Reserve Chairman Ben Bernanke said on Wednesday the
U.S. labour market was still in a "very, very deep hole" and
opted to keep interest rates unchanged, lowering expectations
for growth prospects and fuel demand.
U.S. economic growth likely braked sharply to 2 percent in
the first quarter as higher food and gasoline prices crimped
consumper spending, according to a Reuters survey ahead of a
Commerce Department estimate of first quarter GDP at 1230 GMT.
[]
Earlier, oil prices were boosted by news the U.S. dollar
fell to a three-year low on Thursday, spurring buying for
commodities among both non-dollar buyers and investors looking
to switch from cash. []
Oil trader Robert Montefusco at Sucden Financial said the
market reversal was due to profit-taking ahead of a UK holiday
in honour of the royal wedding of Prince William to Kate
Middleton.
Signs of lower supplies from the North Sea also boosted the
Brent benchmark earlier on Thursday, with at least two Forties
cargoes cancelled and others delayed from the May loading
programme. []
Light, sweet oil sourced from the North Sea has served as a
vital substitute for Libyan exports which are virtually
paralysed due to conflict and international sanctions.
Oil prices are still carrying a hefty risk premium due to
political unrest in the Middle East, with Ben Westmore of
National Australia Bank estimating this as high as $20-$25.
Syrian security forces have killed at least 500 civilians in
a crackdown of a "peaceful democratic uprising", Syrian human
rights organisation Sawasiah said on Thursday. []
On the supply front, U.S. gasoline inventories fell by 2.51
million barrels to 205.59 million barrels, the Energy
Information Administration showed on Wednesday, the lowest level
since August 2009 and the lowest level for April since 2007.
[]
Analysts had forecast a 1.1 million-barrel draw.
(Additional reporting by Manash Goswami in Singapore;
editing by Jason Neely)
