* First storm of Atlantic hurricane season developing
* U.S. Q1 economic growth revised down
* Coming Up: Group of 20 meeting at the weekend
(Updates prices, weather)
By Ikuko Kurahone
LONDON, June 25 (Reuters) - Oil rose on Friday due to
concerns that a storm in the Caribbean may move towards the Gulf
of Mexico, where oil facilities are clustered and BP continues
to fight an oil spill.
But restraining price gains were data showing
slower-than-expected economic growth in the United States in the
first quarter and worries about the fragility of global recovery
ahead of a weekend summit of Group of 20 nations.
By 1309 GMT, U.S. crude futures <CLc1> were up 99 cents to
$77.50 a barrel, bouncing from the day's low of $75.90. Brent
crude futures <LCOc1> were up by 78 cents to $77.25.
"The greatest risk will be with the potential development of
a tropical storm that could make its way to the Gulf of Mexico.
The NHC (National Hurricane Center) has now a high probability
for the tropical low to be upgraded to Tropical Storm status
over the next 48 hours," said Olivier Jakob with Petrometrix.
To kick off the Atlantic hurricane season this year, a
low-pressure area over the western Caribbean Sea strengthened
further and now has a high 70 percent chance of developing into
a tropical depression over the next 48 hours, the NHC said on
Friday.
Most weather models project the system will cross Mexico's
Yucatan Peninsula over the next few days before entering the
central Gulf of Mexico, where BP Plc <BP.L> is trying to clean
up its oil spill.
Shares in the British oil major hit a 14-year low on Friday
morning. []
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For graphics U.S. Gulf of Mexico offshore crude output:
http://graphics.thomsonreuters.com/10/US_OFSHRD0610.gif
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Crude oil and product inventories remain much higher than
year-ago levels In the United States, the world's top oil
market. []
High inventory levels can provide a cushion to reduce price
spikes should bad weather cause supply disruptions. This was the
case when hurricanes Katrina and Rita hit the U.S. Gulf of
Mexico in 2005.
Ahead of the G20 summit, MSCI's all-country world stock
index <.MIWD00000PUS> fell and European shares turned negative,
having opened slightly higher. [][]
The U.S. Commerce Department revised first-quarter U.S.
gross domestic product lower in its final estimate. The world's
largest ecnomy expanded at a 2.7 percent annual rate instead of
the 3 percent pace reported last month. []
Oil prices have fallen from about $87 in early May amid euro
zone concerns triggered by Greece's sovereign debt crisis and
ample supplies.
U.S crude oil is expected to average $79.86 a barrel in
2010, a Reuters poll showed, a slight drop from May's survey and
the second consecutive lower monthly forecast after more than a
year of rising expectations. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Keiron Henderson and James Jukwey)
