* U.S. gasoline stocks fell 4.4 million barrels last
week-EIA
* Technicals show oil to retrace to $81.41 []
* Coming Up: U.S. initial jobless claims; 1230 GMT
By Alejandro Barbajosa
SINGAPORE, Oct 28 (Reuters) - Oil gained on Thursday as the
dollar weakened and U.S. gasoline stockpiles posted a surprise
drop, while doubts lingered about the size of expected monetary
stimulus by the Federal Reserve.
U.S. crude <CLc1> for December gained 16 cents to $82.10 a
barrel at 0347 GMT, after falling nearly 1 percent on
Wednesday, while ICE Brent <LCOc1> added 2 cents to $83.25. The
dollar slid more than 0.4 percent against a basket of
currencies. <.DXY>
Most leading economists expect the Federal Reserve to buy
between $80 billion and $100 billion worth of assets per month
under a new program to bolster the struggling U.S. economy, a
Reuters poll found on Wednesday. []
U.S. gasoline inventories fell by 4.4 million barrels last
week, the Energy Information Administration (EIA) reported on
Wednesday, dampening the bearish effect of
greater-than-expected gains in crude stockpiles of more than 5
million barrels.
"I see the decline in gasoline stocks as quite positive for
the oil market, especially because we don't usually see these
drops this time of year," said Ben Westmore, a commodities
analyst at National Australia Bank.
Still, "there is some talk in the market that the amount of
Fed QE won't be as big as previously expected," Westomore said,
referring to an injection of funds into the economy through
bond purchases in a process known as quantitative easing, or
QE.
Estimates for how long the Fed will print money and how
much it will eventually spend varied widely, from $250 billion
to as high as $2 trillion in the Reuters survey of economists.
Participants deemed the impact of the asset buying could be
limited given that markets have already priced in the effect of
another big round of monetary stimulus.
Although U.S. oil demand jumped on a week-to-week basis,
total U.S. product demand fell 0.3 percent in the four weeks to
Oct. 22 from a year earlier, the EIA said, with gasoline use
down 0.8 percent in the period. []
"It's not an overly positive picture if you take some
trends over the past four weeks," Westmore said. "If you look
at the economic indicators, they continue to show the economy
is pretty sluggish."
Demand for a range of long-lasting U.S. manufactured goods
unexpectedly fell last month and a gauge of business spending
plans also dropped, underscoring the economic recovery's tepid
pace. []
The dollar rose while stocks and commodities fell on
Wednesday on doubts over how aggressively the Federal Reserve
is going to attempt to stimulate the flagging U.S. economy.
Investors had been pricing in large-scale bond purchases by
the Fed. That view lifted equities, commodities and emerging
market assets in recent weeks while the dollar fell because
more Fed injection of funds into the economy via quantitative
easing would lower the currency's value, at least in the short
term.
Oil will average over $83 a barrel in 2011, a Reuters poll
showed, as expectation that a new round of U.S. monetary
stimulus would shore up the economy led analysts to raise
forecasts for the first time in six months. []
Most French oil refineries were set to start outbound
deliveries of fuel as work stoppages ended at two plants on
Wednesday, further easing a strike movement that has led to
pump shortages across France.
(Editing by Manash Goswami)
