* U.S. jobless claims up last week, weighs on oil
* EIA's rising fuel stocks data still weighs on oil
* Dollar stronger, but early weakness curbed oil losses
* Coming up: U.S nonfarm payrolls, 8:30 a.m. EDT Friday
(Recasts, updates prices, market activity; new byline, changes
dateline, previously LONDON)
By Selam Gebrekidan
NEW YORK, Aug 5 (Reuters)- Oil prices slipped again on
Thursday as doubts about the energy demand outlook grew after a
jump in U.S. jobless claims and U.S. government data showing
rising stockpiles of refined products.
The dollar was stronger after midday in a seesaw session,
but the greenback's early weakness helped limit losses for
crude futures, as did expectations of technical support for
crude above $81 a barrel.
U.S. crude for September <CLc1> delivery fell 46 cents to
$82.01 a barrel by 12:17 p.m EDT (1617 GMT), having traded from
$81.56 to $82.48.
Front-month ICE Brent crude <LCOc1> fell 63 cents to $81.57
a barrel.
"The weak dollar helped limit crude losses after the
jobless claims report. We think crude should be supported above
the September contract's 200-day moving average at $81.09 and
trading will probably be cautious ahead of the nonfarm payrolls
report," said Richard Ilczyszyn, senior market strategist at
Lind-Waldock in Chicago.
U.S. initial claims for unemployment benefits rose
unexpectedly last week, underscoring a weak labor market. [], This pressured oil prices and U.S. equities. []
Crude prices were pressured after Wednesday's U.S. Energy
Information Administration report showed U.S. gasoline
stockpiles rose unexpectedly last week and a bigger rise in
distillate stocks than was forecast. []
This added to the supply overhang despite the peak summer
travel season which typically boosts demand for transport fuels
like gasoline and jet fuel.
The fuel stocks rise offset a bigger-than-expected drop in
stockpiles of crude oil.
U.S. RBOB gasoline futures <RBc1> fell 1.56 cents to
$2.1594 a gallon. Heating oil futures <HOc1>, the U.S.
benchmark distillate, dipped 1.44 cents to $2.1878 a gallon.
"The market is digesting yesterday's inventory data where
we're seeing a build at a time of year when inventories are
normally declining. With very little of the driving season
left, there is no bull market in gasoline," said Tim Evans,
energy analyst at Citi Futures Perspective in New York.
"The direct fundamentals for the market are bearish and
today's prices are finally trying to reflect that fact," Evans
added.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on U.S. weekly oil inventories, see:
http://link.reuters.com/vyt33n
For a graphic of oil's returning currency correlation:
http://link.reuters.com/hab43n
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OPEC oil exports, excluding Angola and Ecuador, will fall
by 420,000 barrels a day in the four weeks to August 21,
consultancy Oil Movements said, adding support to crude prices.
[]
Oil prices on Monday broke out of range-bound trade and
moved above $80 a barrel, then pushed to a three-month high of
near $83 a barrel before ending slightly lower on Wednesday.
Industry sources are watching developments in the Middle
East including Israel's tensions with Lebanon and Iran's
dispute with the West over Tehran's nuclear program.
While some analysts say the return of a geopolitical
premium in the oil price is partly responsible for the rally,
others think prices have run ahead of oil market fundamentals.
(Additional reporting by Robert Gibbons in New York, Emma
Farge in London, Alejandro Barbajosa in Singapore; Editing by
David Gregorio)
