UPDATE 5-Oil falls to 2-month low on demand concerns

                                
 * Oil extends losses for 7th straight day
                                
 * EIA data show builds in oil product stocks
                                
 * Upbeat jobs data, narrowing trade gap fail to support
                                
 (Recasts, updates prices, previous dateline LONDON)
                                
 By Rebekah Kebede
                                
 NEW YORK, Dec 10 (Reuters) - Oil prices fell to a two-month
low of $70 a barrel on Thursday as excess inventories and
sluggish demand outweighed gains on Wall Street and positive
economic data.
                                
 U.S. crude for January delivery <CLc1> fell 54 cents to
$70.13 a barrel by 1:09 p.m. EST (1809 GMT), after hitting a
low of $69.81 as it lost ground for the seventh consecutive
day. London Brent crude <LCOc1> fell 81 cents to $71.58.
                                
 On Wednesday, U.S. Energy Information Administration data
showed builds in U.S. refined product stocks, highlighting the
weakness of demand in the world's largest energy consumer.
[EIA/S]
                                
 "NYMEX crude futures have fallen in recent days without
much help from the dollar or equity markets. And the disconnect
with the financial markets highlights the continuing bearish
fundamentals in the energy markets," said Jim Ritterbusch,
president, Ritterbusch & Associates, Galena, Illinois.
                                
 There were further signs that global oil supplies were
rising on Thursday as fuel inventories held by two top oil
firms in China, the world's second-largest consumer of oil,
also climbed as domestic sales dropped. [ID:nTOE5B9088]
                                
 Saudi Arabia restored full-term crude allocations to at
least two Asian buyers for January and kept contracted volumes
to six others, according to industry sources. [ID:nTOE5B900Z]
                                
 However, the world's top oil exporter will keep crude oil
supplies to customers in Europe unchanged in January compared
with December.
                                
 The Organization of the Oil Exporting Countries, which will
hold its next meeting on Dec. 22, is unlikely to raise
production targets, according to most members.
                                
 Ecuador's energy minister on Wednesday said he expected
OPEC to leave oil output targets unchanged at the meeting,
setting the stage for prices to remain between $70 and $80 per
barrel. [ID:nN09177464]
                                
 Gains on Wall Street after a drop in continuing claims for
jobless benefits and upbeat trade balance data failed to
support oil prices. [.N]
                                
 The number of U.S. workers filing new claims for jobless
benefits rose more than expected last week, but continuing
claims fell, the Labor Department said. [ID:nN10156007]
                                
 U.S. exports goods and services hit their highest level
since November 2008, narrowing the trade gap as the U.S. dollar
helped boost exports, the Commerce Department said Thursday.
[ID:nN09169993]
                                
(Additional reporting by Gene Ramos and Robert Gibbons in
New York, Joe Brock in London; Editing by Lisa Shumaker)