* Firm econ data, colder weather support prices
* Canadian oil-sands plant outage may help lower
inventories
* OPEC meeting next week seen keeping output targets steady
By Jennifer Tan
SINGAPORE, Dec 18 (Reuters) - Oil rose above $73 a barrel
on Friday, underpinned by signs of a gradual economic recovery
in the United States and the prospect of increased winter
demand as a cold snap gripped the U.S. Northeast.
A slight fall in the U.S. dollar <.DXY> from a more than
three-month high the previous day added to price support, after
a slew of economic data on Thursday that seemed to show the
United States on track for a recovery, albeit a patchy one.
Crude for January delivery rose 46 cents to $73.11 a barrel
by 0230 GMT, after settling down 1 cent on Thursday.
London Brent crude was up 18 cents at $73.55.
"We've seen some short-covering due to expectations of
colder weather in the United States," said Sumisho Sano,
general manager of research at Tokyo-based SCM Securities.
"We think oil will stay in the range of $65-$75 for the
rest of the year. It will be choppy though, with the market
continuing to focus on dollar movements, inventories, and
economic data," he added.
On the supply front, Suncor Energy Inc <SU.TO> said
Thursday it would cut output at one of its oil sands upgraders
in Canada's Alberta Province by up to 150,000 barrels a day, or
half of its capacity, for two to four weeks after a fire at the
plant on Tuesday. []
The outage had a limited effect on world oil prices, but
traders said it could mean some of the crude stocks
accumulating in the U.S. Midwest, and weighing on front-month
futures, will be drawn down.
The January oil contract, which expires on Monday, is on
track for a 4.6 percent gain this week, but the second month is
up just 3.1 percent, as the backwardation between the two
<CL-1=R> narrowed to around $1 from more than $2 at the start
of the week.
There is no expectation of a change in output from the
Organization of the Petroleum Exporting Countries (OPEC), which
pumps about a third of the world's oil, when it meets in Angola
on Dec. 22. []
Factory activity in the U.S. mid-Atlantic region hit a
4-1/2-year high in December and a gauge of future economic
conditions rose last month, adding to evidence of a pick-up in
the world's largest economy.
However, the number of people filing new applications for
unemployment benefits last week rose unexpectedly, a sign that
the labour market was rebounding only gradually.
[]
(Editing by Michael Urquhart)
