* Strong Chinese industrial, oil data lend support
* Strong support seen at $65 after 7-day losing run
* Hopes for colder U.S. weather to help ease high stocks
By Ramthan Hussain
SINGAPORE, Dec 11 (Reuters) - Oil edged up on Friday,
supported by solid industrial growth in China, after falling
for a seventh straight session a day earlier on concerns over
global oversupply, dipping below $70 for the first time in two
months.
Signs that the U.S. economy is on a steady growth track
also offered some relief to oil even though the dollar held
firm.
U.S. crude for January delivery <CLc1> rose 41 cents to
$70.95 a barrel by 0352 GMT, after touching an intraday low of
$69.81 on Thursday. Over the past seven sessions, front month
crude has sunk by almost $8, or about 10 percent, the biggest
loss for the front month since July.
London Brent crude <LCOc1> gained 37 cents to $72.23.
Some analysts said the sharp drop in prices reflected
growing pessimism about a potential recovery, but others
pointed to support from Asia.
"The current market is too pessimistic," said Sumisho Sano,
General Manager for Research and SCM Securities in Tokyo. "The
fundamentals are not so good in the United States, but China
and Asia are not so bad, driven by industrial demand in the
region."
He expected oil prices to hold firm within the $65 to $80
range, down from the previous $75-80.
While U.S. distillates stocks are abundant, Sano pointed to
forecasts for falling temperatures in the world's largest
energy consumer to help ease bulging stockpiles, while pushing
natural gas prices higher.
NYMEX natural gas futures jumped 8 percent on Thursday,
backed by cold Northeast and Midwest weather forecasts and a
government report showing an unexpectedly-large weekly
inventory decline. [] []
AccuWeather.com expects temperatures in the Northeast, the
key heating oil market, to average below normal for the next 10
days, while the National Weather Service called for
below-normal temperatures for the eastern half including Texas,
with seasonal or above seasonal seen for the rest of the United
States.
CHINA SUPPORTS
China's November industrial output growth surged to its
strongest since June 2007, underscoring the economy's robust
recovery from the global downturn in response to massive fiscal
and monetary stimulus, and analysts expected the trend to
continue in coming months. [] []
Refining rates in the world's second-largest oil user also
posted a record high in November, up 21 percent from a year
earlier to 8.12 million barrels per day (bpd), signalling
recovering demand. []
But strong production also led to a build-up in fuel
inventories in China's two oil majors last month. Also while
oil product exports rose, imports fell last month.
[]
Data from the U.S. was mixed. In the United States, while
the number of workers filing new claims for jobless benefits
rose more than expected last week, continuing claims fell, the
Labor Department said. []
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.
[]
The dollar held steady on Friday, up 0.09 percent against a
basket of major currencies <.DXY> <=USD>, after the upbeat
Chinese data and some improvement in U.S. figures.
(Editing by Michael Urquhart)
