RTRS: UPDATE 4-Oil falls from 3-wk high, inventories support
* Oil tips from highest since Dec. 4
* Inventory drops in U.S., Europe and Asia supports
* Equity markets higher; eyes on U.S. jobless data
(Update prices)
By Ikuko Kurahone
LONDON, Dec 24 (Reuters) - Oil fell towards $76 in
relatively light trade on Thursday, after briefly touching a
three-week high on equity gains and falls in inventories in key
consumer markets.
By 1252 GMT, U.S. crude oil futures CLc1 were trading 23
cents lower at $76.44 a barrel, having hit $77.48 earlier, the
highest since Dec. 4.
ICE Brent crude futures LCOc1 fell 45 cents to $75.00.
On Wednesday, oil prices rose more than 3 percent, the
biggest one-day percentage gain in about five weeks, after
weekly data from the U.S. Energy Information Administration
(EIA) showed a larger-than-expected fall in crude inventories in
the United States over the past week. [EIA/S]
Inventories of oil products, such as gasoline and heating
oil, also fell.
Analysts said some investors were locking in profits ahead
of the Christmas holiday after a three-day rally until
Wednesday.
"Yesterday's price advance was very strong after the EIA
data so many people are adjusting their positions now," Olivier
Jakob with Petromatrix said.
"Volume is very light in a short trading day before the
holiday and trading in the stock market is also light."
The U.S. data helped switch market momentum this week after
a slide to below $69 and after a period of narrow range-trading
earlier in December, investors said.
"The EIA data were much more positive than the market had
expected, so many factors are now quite bullish," said Tetsu
Emori, a fund manager at Tokyo-based Astmax Co Ltd.
"I think the market is heading towards the upside, probably
will hold the (similar) level by the end of the year."
Oil inventories have fallen elsewhere in the world over the
past week, including Northwest Europe and Japan, the world's
third largest oil consumer.[ARA/] [O/JAPAN1]
Analysts also said equity markets supported oil prices.
Europe's leading share index the FTSEurofirst 300 index
.FTEU3 rose at the opening, gaining for the fourth session to
post its best yearly gains in a decade. [.EU]
The dollar eased from a thee-month high, while gold bounced
from a seven-week low. [FRX/]
U.S. stock index futures were higher on Thursday as
investors awaited data that was expected to show improvement in
durable goods orders and the crucial labour market. [.N]
(Additional reporting by Judy Hua in Singapore, editing by
Keiron Henderson and Sue Thomas)
