* 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
(Updates prices, adds Saudi Aramco discount sale)
By Fayen Wong
PERTH, Dec 1 (Reuters) - Oil steadied at above $77 a barrel
on Tuesday, after a rebound of 1.6 percent in the previous
session, as Dubai debt default fears eased and 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> crept up 1 cent to
$77.29 a barrel by 0722 GMT. London Brent crude <LCOc1> inched
up 2 cents to $78.49.
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.
"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."
In a sign of tepid demand, Saudi Aramco has sold 80,000
tonnes of early December fuel oil at a three-year low discount
of under $15 a tonne to Singapore spot quotes, traders said on
Tuesday. []
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
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 recovered early losses on Tuesday as the yen
came under pressure ahead of a special central bank meeting,
while Asian shares were steady as investors paused after
Monday's bounce. []
(Editing by Michael Urquhart)
((fayen.wong@thomsonreuters.com; +618 9456 1947; Reuters
Messaging: fayen.wong.reuters.com@reuters.net))
((If you have a query or comment on this story, send an email
to news.feedback.asia@thomsonreuters.com))
