* U.S. jobless claims up last week, weigh on oil
* Weak July retail sales weigh on equities, oil
* Dollar weaker after seesawing, supportive to oil
* Coming up: U.S nonfarm payrolls, 8:30 a.m. EDT Friday
(Recasts, updates prices, market activity to settlement)
By Selam Gebrekidan
NEW YORK, Aug 5 (Reuters)- Oil prices slipped on Thursday,
as disappointing U.S. jobless claims and retail sales data fed
doubts about the energy demand outlook the day after a
government inventory report showed rising fuel stockpiles.
The dollar weakened broadly, after seesawing, helping to
limit crude oil's slide, along with technical support pegged in
the area above $81 a barrel.
U.S. crude for September <CLc1> delivery fell 46 cents to
settle at $82.01 a barrel, trading in a range from $81.56 to
$82.48.
Front-month ICE Brent crude <LCOc1> fell 59 cents to settle
at $81.61 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.
The key nonfarm payrolls report due on Friday at 8:30 a.m.
EDT (1230 GMT) is expected to show payrolls fell a second
straight month in July, down by 65,000, according to a Reuters
survey of analysts. []
U.S. initial claims for unemployment benefits rose
unexpectedly last week, the government said on Thursday,
underscoring a weak labor market. []
The jobless claims data combined with a report of weak July
retail sales [] punctuated the uneasy economic
climate and pushed U.S. stocks lower on Thursday ahead of
Friday's nonfarm payrolls report.
Crude prices were pressured on Wednesday by a U.S. Energy
Information Administration report showing U.S. gasoline
stockpiles rose unexpectedly last week. The report also
revealed distillate stocks rose more than was forecast.
[]
The fuel stocks rise pressured refined products futures and
offset a bigger-than-expected drop in stockpiles of crude oil,
though they remained well above year-ago levels.
On Thursday U.S. RBOB gasoline futures <RBc1> fell 1.06
cents to settle at $2.1644 a gallon. Heating oil futures
<HOc1>, the U.S. benchmark distillate, dipped 1.54 cents to
settle at $2.1868 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.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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 were expected to be lower in the four
weeks to August 21, consultancy Oil Movements said, adding
support to crude prices. []
Industry sources were also eyeing 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.
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.
(Additional reporting by Robert Gibbons in New York, Emma
Farge in London, Alejandro Barbajosa in Singapore; Editing by
David Gregorio)
