* U.S., Japanese data point to lower oil consumption
* U.S. GDP grows 5.7 percent in Q4, fastest in six years
(Updates prices, adds detail, changes dateline from LONDON)
By Edward McAllister
NEW YORK, Jan 29 (Reuters) - Oil prices fell toward $73 per
barrel on Friday, heading for a third consecutive week of
losses, as continued lagging energy demand outweighed
stronger-than-expected U.S. economic data.
U.S. oil for March delivery <CLc1> fell 27 cents to $73.37
a barrel by 12:15 p.m. EST (1715 GMT), down more than 10
percent from a 15-month high of just under $84 on Jan. 11.
In London, ICE Brent crude for March <LCOc1> fell 30 cents
to $71.83 a barrel.
The U.S. economy grew a faster-than-expected 5.7 percent in
the fourth quarter of 2009, the quickest pace in more than six
years, as businesses reduced inventories less aggressively, the
U.S. Commerce Department said on Friday. []
The Institute for Supply Management-Chicago, also on
Friday, said its index of Midwest business activity rose in
January to 61.5 from 58.7 in December. []
But the positive economic signals came amid reports showing
tepid demand in Japan and the United States, rising U.S. fuel
stockpiles and expectations that OPEC producers will boost
exports.
U.S. oil demand shrank 2 percent in the past four weeks
from a year earlier, while Japanese data showed crude imports
fell 2.6 percent in December and gasoline sales tumbled 2.4
percent. []
China's moves to rein in credit also raised concerns about
the pace of economic growth and oil demand.
"The market made it's move up ahead of the open outcry
session, after the GDP number. We are correcting now," said
Stephen Schork, editor of the industry newsletter Schork Report
in Villanova, Pennsylvania.
"I think the Chevron earnings report is also weighing," he
added. "If the No. 2 oil company in the No. 1 oil consuming
country can't make money at $70 a barrel, then why is NYMEX
crude at $74?"
Chevron Corp <CVX.N> posted a 37 percent drop in quarterly
profit, missing Wall Street forecasts, as steep losses at its
refineries offset gains from higher oil prices and production.
[]
Oil prices have been pressured this week by a stronger
dollar, which on Friday rose to its highest level in more than
six months against the euro on concerns over potential fiscal
crises in European economies, including Greece and Portugal.
[]
A stronger dollar often indicates investors are funneling cash away from riskier assets, such as commodities. It also
can curb demand for crude oil from buyers who hold other
currencies, since oil is priced in dollars.
"Current prices do not reflect the fundamentals of demand
and supply and could go a lot lower, although I think we will
see some stabilization before the next move downwards," said
Eugen Weinberg, commodities analyst at Commerzbank.
Weinberg said he was concerned the oil market could see a
big drop similar to the move in copper this week.
Copper, a forward indicator of economic activity due to its
use in construction and industrial processes, dropped nearly 5
percent in London on Thursday and saw follow-through selling in
Asia on Friday. []
The chief executive of oil major Royal Dutch Shell <RDSa.L>
told Reuters Insider on Friday that oil would not go back to
its 2008 peak level of more than $140 a barrel and was instead
expected to trade in a $60 to $80 range. []
This view found resonance in Tehran, where Iran's OPEC
governor was quoted on Friday as saying that oil prices would
not drop below $60 per barrel by July. []
(Additional reporting by Gene Ramos and Robert Gibbons in New
York, Christopher Johnson in London; Editing by Walter Bagley)
