* U.S. weekly jobs data, July leading indicators due later
* OPEC seen keeping supply targets steady at Sept meeting
* China's 4.5 pct rebound lifts sentiment (Updates with
prices, Shanghai stocks)
By Jennifer Tan
SINGAPORE, Aug 20 (Reuters) - Oil was steady above $72 a
barrel on Thursday, after rising more than 4 percent the
previous day, buoyed by industry data showing a steep drop in
crude imports and stockpiles in top consumer the United States.
The release of U.S. July leading economic indicators and
weekly jobless claims -- both of which are expected to be
mildly positive -- could provide further clues on the outlook
for the world's largest economy and set the market's trading
tone.
Sentiment was also bolstered by a 4.5 percent surge in
Chinese stocks on Thursday, as modest signs of official support
for the market helped trigger technical buying, following a 20
percent dive in the two weeks to Wednesday's close.
By 0735 GMT, U.S. crude for September delivery <CLc1> was
up 28 cents at $72.70 a barrel, off an earlier session high of
$72.78. It had settled $3.23 higher at $72.42 a barrel on
Wednesday. London Brent crude for October <LCOc1> was unchanged
at $74.59.
"The EIA report has been pretty bullish for the market, and
will support sentiment in the near term," said David Moore,
commodity strategist with the Commonwealth Bank of Australia.
"But we expect prices to remain volatile, as the overall
demand picture remains weak, and as equity markets and the
dollar continue to play major roles in influencing trading
direction."
U.S. crude stockpiles plunged by a whopping 8.4 million
barrels in the week to Aug. 14 -- against analysts' forecasts
for a 1.3 million barrel build -- as imports dropped to the
lowest level since September 2008 and refiners hiked runs, data
from the U.S. Energy Information Administration showed. []
Gasoline and distillate stockpiles also showed
bigger-than-expected declines.
This confirmed the API data released late on Tuesday which
showed a 6.1-million-barrel fall in U.S. crude inventories.
The release of first-time claims for jobless benefits for
the week ended Aug. 15 at 1230 GMT, and July leading economic
indicators at 1400 GMT, are expected to show a gradual, nascent
recovery in the U.S. economy.
Economists polled by Reuters forecast 550,000 new jobless
claims filings versus 558,000 in the prior week, while July
leading indicators are seen rising 0.7 percent, matching June's
increase.
U.S. stocks rose on Wednesday, shaking off a 4.3 percent
slide in China's equity market, while the dollar fell against
the euro and a basket of currencies, as a rebound on Wall
Street reduced safe-haven demand for the greenback. [] []
China stocks, viewed by investors as a weathervane of risk
sentiment, tumbled to a two-month low on Wednesday on
disappointment that Beijing had not taken steps to prop up the
market after the key index plunged 20 percent from two weeks
ago.
But investors took heart after the Shanghai Composite Index
<> posted its second biggest one-day gain this year on
Thursday, giving a boost to most Asian equity and commodity
markets. Japan's Nikkei average <> climbed 1.8 percent to
bounce back from a three-week closing low.
On the supply front, increased oil output to a year-high
from OPEC president Angola, flouting agreed limits, has helped
stack the odds against any formal change when the producer
group meets in September.
Without a sharp slide in crude prices, OPEC is likely to
leave its output targets unchanged when it meets on Sept. 9,
most OPEC delegates and analysts said. []
Kuwait also sees no need for OPEC to change oil supply
targets as the oil price is satisfactory, the country's oil
minister said on Wednesday. []
Traders are also keeping an eye on storms in the Atlantic
Basin as any potential output disruption could boost prices.
But there was no immediate threat seen to U.S oil installations
in the Gulf of Mexico, home to a quarter of U.S. oil output and
15 percent of its natural gas production.
Powerful Hurricane Bill, a dangerous Category 4 storm with
135 mph (215 kph) winds, raged across the open Atlantic on
Wednesday, but posed no threat. []
(Editing by Ben Tan)
