* Market eyes econ data, weekly U.S. fuel inventory report
* Prices seen rangebound in the short term -Credit Suisse
* Dollar slips after Dubai worries wane
By Fayen Wong
PERTH, Dec 1 (Reuters) - Oil rose above $77 a barrel on
Tuesday, after a rebound of 1.6 percent in the previous
session, as Dubai debt default fears eased and cautious
investors cast about for fresh clues to the pace of global
economic recovery.
With a series of key economic indicators due out in the
United States later in the day, as well as a preliminary
snapshot of the weekly U.S. fuel inventory report, traders are
expected to stay on the sidelines until they get a clearer
picture on the state of energy demand.
U.S. crude for January delivery <CLc1> inched up 4 cents to
$77.32 a barrel by 0322 GMT. The contract settled up $1.29 at
$78.47 on Monday.
London Brent crude <LCOc1> crept up 7 cents to $78.54.
Crude oil prices, which rose for four straight months and
squeezed out a gain of 0.5 percent in November, have oscillated
in a narrow band of $70 to $82 over the past two months against
a backdrop of mixed economic data.
Analysts expect prices to be rangebound in the short term.
"We see little impetus for a break to the upside, even if
economic indicators surprise to the upside this week," Credit
Suisse analysts said in a research note to clients.
"The inventory overhang in the diesel and heating oil
markets should prevent prices from breaking higher for the time
being."
Key data due for release later on Tuesday include U.S.
weekly retail sales, factory activity for November, pending
home sales and construction spending for October. <ECON>
Investors will watch for the weekly report of the American
Petroleum Institute to see if fuel demand in the world's
largest energy consumer shows signs of sustained recovery, and
dollar movements will also set direction, analysts said.
U.S. crude oil stockpiles likely were little changed last
week as higher imports offset gains in refinery utilisation, a
preliminary Reuters poll of analysts showed. []
Distillate stocks were seen down 400,000 barrels, while
gasoline stocks were expected to rise by 900,000 barrels, the
poll showed.
The dollar slipped against major currencies on Tuesday as
investors took the view that Dubai debt woes would probably be
contained, reducing safety bids for the greenback. []
Implied volatility on U.S. crude futures <CLATMIV>, a
measure of risk perception based on options, fell 2.5 percent
on Monday, after posting a jump of 15 percent, its steepest
since Oct 2008, on Friday.
Oil's gains on Monday were supported by Iran's announcement
that it planned to build 10 uranium enrichment plants and on
news that Tehran had restructured its naval forces for
operations in the Persian Gulf in the event of a conflict.
[]
Easing concerns about Dubai's debt problems and an upbeat
U.S. regional business activity report also boosted investors'
risk appetite and drew more funds into energy and commodities.
(Reporting by Fayen Wong; Editing by Clarence Fernandez)
((fayen.wong@thomsonreuters.com; +618 9456 1947; Reuters
Messaging: fayen.wong.reuters.com@reuters.net))
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