LONDON, Aug 20 (Reuters) - Brent crude futures eased towards
$74 a barrel on Thursday, retracing some of the previous day's
jump as optimism faded about the pace of economic and oil demand
recovery.
The first Atlantic hurricane of the season, Bill, was
downgraded to a Category 3 storm, further dampening sentiment.
Traders watch for the potential of storms to hit key oil
infrastructure in the U.S. Gulf.
BRENT PRICES
* October Brent was down 51 cents at $74.08 a barrel by 1059
GMT.
* The contango spread between the first and second Brent
futures months was around 66 cents. LCO-1=R
* The premium CL-LCO1=R for October Brent over September
U.S. crude CLc1 was around $1.80.
GAS OIL PRICES
* September gas oil LGOc1 was up $4.75 at $605.25 a tonne.
TECHNICALS
* Brent support at $73.00, resistance at $75.00.
* Gas oil support at $600, resistance at $610.
OTHER MARKETS
* The dollar was up against a basket of currencies. [USD/]
* European shares raced higher in early trade on Thursday,
supported by a rebound in Asian equities. [.EU]
FUNDAMENTALS
* U.S. crude stockpiles fell 8.4 million barrels in the week
to Aug. 14 -- against analysts' forecasts for a 1.3 million
barrel build -- as imports dropped to the lowest level since
September 2008 and refiners hiked runs, data from the U.S.
Energy Information Administration showed. [EIA/S]
Gasoline and distillate stockpiles also showed
bigger-than-expected declines.
* Kuwait also sees no need for OPEC to change oil supply
targets as the oil price is satisfactory, the country's oil
minister said on Wednesday. [ID:nLJ334326]
EVENTS/DATA
* The following data is expected on Thursday: ECON
Weekly U..S. jobless claims (1230 GMT)
U.S. leading indicators for July (1400 GMT)
Philadelphia Fed August business activity index (1400 GMT)
(Reporting by Alex Lawler; editing by James Jukwey)
