UPDATE 7-Oil drops for 7th session on demand concerns

                                
 * EIA data show builds in oil product stocks
                                
 * Upbeat jobs data, narrowing trade gap fail to support
 (Recasts, updates with settlement prices)
                                
 By Rebekah Kebede
                                
 NEW YORK, Dec 10 (Reuters) - Oil prices dipped below $70 a
barrel for the first time in two months on Thursday, extending
losses for a seventh consecutive session, as excess fuel
inventories created concerns about weak demand.
                                
 U.S. crude for January delivery <CLc1> settled at $70.54 a
barrel, down 13 cents, after hitting a low of $69.81. In
London, Brent crude <LCOc1> settled at $71.86, down 53 cents.
                                
 In the latest losing streak, front-month crude has fallen
$7.83, or about 10 percent, the biggest loss for front-month
crude since July.
                                
 On Wednesday, U.S. Energy Information Administration data
showed builds in refined product stocks, highlighting the
weakness of demand in the world's largest energy consumer.
[EIA/S]
                                
 "The $70 level is just an arbitrary number. More
importantly, prices have eroded over $6 during a week that
contained no negatively jarring economic data. A fact, I think,
shows conclusively the sentiment pendulum swinging more towards
pessimism about a potential recovery," said Mike Fitzpatrick,
vice president at MF Global in New York.
                                
 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 of 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 and Walter
Bagley)