* Slower-than-expected US Q3 GDP growth dents sentiment
* API data shows big build in weekly crude stockpiles
* EIA report, other U.S. economic data due later
* Activity thins ahead of U.S. Thanksgiving holiday
(Updates prices)
By Jennifer Tan
SINGAPORE, Nov 25 (Reuters) - Oil rebounded above $76 a
barrel on Wednesday, after falling 2 percent a day earlier on
disappointing U.S. growth and data showing a big build in crude
inventories, signalling weak demand in the world's top energy
user.
U.S. crude for January delivery <CLc1> rose 39 cents to
$76.41 a barrel by 0639 GMT, after settling down $1.54 at
$76.02 on Tuesday. London Brent crude <LCOc1> was up 50 cents
at $76.96.
Crude prices have more than doubled from levels below $33
last December, though they are still around 48 percent lower
than a record high of above $147 hit in July 2008.
U.S crude oil stocks rose 3.3 million barrels in the week
to Nov. 20, eclipsing forecasts of a 1.2-million barrel build
from analysts polled by Reuters this week, the report from the
API showed. [] The EIA will release its own data at 1530
GMT.
Sentiment soured further on signs that demand in Japan, the
world's third-largest oil consumer, remained sluggish, with
crude imports sliding for the 12th straight month in October.
"Fundamentals are not looking too good, and sentiment has
turned due to the weaker data from the United States," said
Sumisho Sano, general manager for research at SCM Securities in
Tokyo.
"We could see oil break below the crucial $75-$76 level,
and trade down to $65-$75. If we do break $75, there will be a
lot of liquidation in the market."
The release of U.S. Energy Information Administration (EIA)
data later in the day could confirm the bearish figures from
the American Petroleum Institute (API) and set the market's
tone, although trading is expected to remain light ahead of the
Thanksgiving holiday.
Traders will also scrutinise economic data due later,
including weekly U.S. jobless claims and October durable goods
orders, for signs of improvement in the world's largest
economy.
Oil markets have increasingly looked to economic data this
year for signs of a global recovery to boost flagging demand.
Prices have risen amid rallying equity markets and a weaker
U.S. dollar, which makes crude more attractive for foreign
currency holders. The dollar hit its lowest in 7 weeks against
the yen on Wednesday after mixed U.S. data fanned worries about
a global rebound.
Underscoring the fragile state of the recovery, a second
estimate of third-quarter GDP by the Commerce Department showed
the U.S. economy grew at a much slower annual pace of 2.8
percent in the third quarter, versus an earlier estimate of 3.5
percent.
But a fifth month of gains in house prices in September and
an improvement in consumer morale indicated that the world's
largest economy had probably exited from its most painful
recession in 70 years. []
Japan's oil demand showed little improvement. The country
imported 16.214 million kilolitres (3.29 million barrels per
day) of crude last month, down 18.4 percent and the lowest for
the month since 16.099 million in 1989, preliminary data
showed.
More mixed economic data is on the cards out of the United
States. The Commerce Department will release October durable
goods orders at 1330 GMT, with economists expecting a small
rise of 0.5 percent rise versus September's increase of 1.4
percent.
The Labor Department will also unveil first-time claims for
jobless benefits for the week ended Nov. 21. A total of 500,000
new filings are expected, versus 505,000 in the prior week.
New home sales data for October is also due at 1500 GMT.
Economists forecast a total of 410,000 annualised units in the
month, up marginally from 402,000 in September.
(Editing by Kim Coghill)
((jennifer.tan@thomsonreuters.com; +65-6417 4679; Reuters
Messaging: jennifer.tan.reuters.com@reuters.net))
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