* CFTC proposes energy trader position limits
* U.S. retail sales down, jobless claims up
* Prices in range between $75 and $85 a barrel
(Updates prices, recasts, adds detail)
By Edward McAllister
NEW YORK, Jan 14 (Reuters) - Oil prices rose marginally on
Thursday after proposals from the U.S. futures market regulator
to limit positions in energy contracts were deemed not as
strict as some feared.
The Commodity Futures Trading Commission moved on Thursday
to limit the role of big traders in energy markets, unveiling
proposals to put a hard cap on the size of positions that
dealers can hold but offering a limited exemption for big
financial hedgers. []
The long-awaited proposals will apply to the four
most-traded energy contracts on the two major exchanges.
It remains to be seen if the limits -- which CFTC said
would affect only the 10 biggest position holders if
implemented immediately -- are sufficient to satisfy lawmakers
who have clamored for regulatory action since oil prices surged
to a record $147 in 2008.
"The energy markets are breathing a sigh of relief that the
CFTC proposals on position limits do not seem as bad as
feared," said Phil Flynn, analyst at PFGBest Research in
Chicago.
"It looks like the CFTC has backed off from its tough talk
earlier and now appears to have a lot of room to grant
exemptions."
U.S. crude for February delivery <CLc1> rose 21 cents to
$79.86 a barrel by 2:04 p.m. EST (1904 GMT). In London, Brent
crude for February <LC0c1> fell 41 cents to $77.90 a barrel
ahead of its expiry later in the day.
Crude had earlier fallen as weak U.S. economic signals
spurred fears of a sluggish rebound in demand in the world's
largest energy consumer.
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. []
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. []
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. []
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 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.
(Additional reporting by Gene Ramos in New York, Emma Farge in
London, and Alejandro Barbajosa in Singapore; editing by Jim
Marshall)
