* U.S. oil slides 48 cents to $112.38; Brent falls to
$124.50
* Weak dollar, MidEast unrest to support oil -analyst
* Dollar flounders at three-year lows against major
currencies
* Brent to drop to $123/bbl -technicals []
* Coming up: U.S. personal income m/m; 1230 GMT
(Adds technical analysis, updates prices)
By Manash Goswami
SINGAPORE, April 29 (Reuters) - Crude fell on Friday, after
settling at a 31-month high in the previous session, on concerns
that slowing growth in top consumer United States may pare
demand, but a weaker dollar and unrest in the Middle East helped
stem a slide in prices.
Still, U.S. crude is heading for a rise of 5.7 percent in
April, marking its eighth consecutive month of gains, and the
longest run of monthly increases since 1983, Reuters data shows.
A weak dollar, wallowing at three-year lows, helped bolster
silver and gold within sight of historic highs on Friday as
investors sought alternative assets. On the other hand, U.S.
economic growth braked sharply in the first quarter as higher
food and gasoline prices dampened consumer spending and sent
inflation rising at its fastest pace in 2-1/2 years.
"The two pieces of news have counterbalanced each other,
helping keep oil steady," said Victor Shum, an analyst at Purvin
& Gertz. "Oil had risen somewhat, and some pullback from that
point was not unexpected."
NYMEX crude for June <CLc1> fell 37 cents to $112.49 a
barrel by 0254 GMT, after settling at $112.86. Brent <LCOc1>
fell 52 cents to $124.50 a barrel, after ending at $125.02.
U.S. crude futures rose on Thursday to hit a 31-month high
settlement after a volatile trading session. U.S. gasoline
futures surged for a sixth straight session, pushing prices to
their highest since July 2008, as the world's top consumer gears
up for driving season.
Growth in the U.S. gross domestic product slowed to an
annual rate of 1.8 percent after a fourth-quarter pace of 3.1
percent, the Commerce Department said. Economists had expected a
2 percent pace. []
HSBC's China Purchasing Managers' Index clung near
seven-month lows in April as output growth cooled, with the
slowdown helping to tame factory inflation to an eight-month
trough.
Friday's data by no means signalled that China's vast
manufacturing sector is grinding ever slower. Instead, it
suggests factories in the world's second-biggest economy are
growing steadily rather than booming. []
Brent may fall to $123 a barrel as a bullish target of
$128.49 per barrel has been aborted as it failed a resistance at
$126.28, Reuters market analyst Wang Tao said. U.S. oil has
dropped to a $110.71-$113.48 range, and its technical signals
are neutral, he said.
PRICES SUPPORTED
Oil prices will continue to trade "sideways" in the next few
days, staying supported at current levels because of fears the
geopolitical unrest will spread to other countries in the Middle
East, Shum said. Prices would stay around current levels despite
concerns of slowing demand because investors have few options to
park their money, he said.
"Any aggressive exit by is unlikely because what are the
alternatives for investors?" Shum said. "If the global economy
tanks, stocks will go down. Oil will stay supported because of
geopolitical risks."
Syrian President Bashar al-Assad faced rare dissent within
his Baath Party and signs of discontent in the army over violent
repression of protesters that a rights group said on Thursday
had killed 500 people. []
Libya's two-month civil war spilled over the border into
Tunisia, while rebels in Misrata said only NATO could halt the
bombardment of the besieged city. The struggle between forces
loyal to Libyan leader Muammar Gaddafi and rebels trying to end
his rule of more than four decades drew in outsiders last month,
as NATO began air strikes on government troops under a United
Nations mandate. []
"With renewed buying being seen from Asian customers, we
continue to see upside price risks in the environment, unless
more concrete action from OPEC members is forthcoming," J.P.
Morgan analysts led by Lawrence Eagles said in a report.
(Editing by Clarence Fernandez)
