* U.S., Japanese data point to lower oil consumption
* U.S. GDP grows 5.7 percent in Q4, fastest in six years
* U.S. equities give up gains
(Updates prices, recasts, changes quote)
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 lagging energy demand outweighed
stronger-than-expected U.S. economic data.
U.S. oil for March delivery <CLc1> fell 34 cents to $73.30
a barrel by 1:48 p.m. EST (1848 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 28 cents
to $71.85 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. []
The Institute for Supply Management-Chicago said its index
of Midwest business activity rose in January to 61.5 from 58.7
in December. []
But other reports showed tepid energy 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.
U.S. stock markets gave up early gains as economic worries
about Europe offset the encouraging U.S. GDP data. The oil
market has looked to wider economic data for signs of economic
recovery and a potential rebound in energy demand.
"Equities are down and the euro continues to fall against
the dollar. If stocks end down and leave a bad taste in the
mouth to end the month then there could be some negative follow
through next week," said Richard Ilczyszyn, senior market
strategist at Lind-Waldock in Chicago.
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 jitters about 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.
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.
[]
"Current prices do not reflect the fundamentals of demand
and supply and could go a lot lower," 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, seen as an economic indicator due to its use in
construction and industry, 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 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 David
Gregorio)
