* All eyes on details of Fed's expected QE2 next week
* Technicals show oil to retrace to $81.41 []
* Coming Up: U.S. initial jobless claims; 1230 GMT
(Changes dateline from SINGAPORE, updates prices, quotes)
By Zaida Espana and Isabel Coles
LONDON, Oct 28 (Reuters) - Oil prices crept higher on
Thursday, with all eyes on U.S. weekly jobless numbers due later
for clues about the potential size and pace of the U.S. Federal
Reserve's stimulus package expected next week.
By 0930 GMT, U.S. crude <CLc1> for December gained 17 cents
to $82.11 a barrel, after falling nearly 1 percent on Wednesday,
while ICE Brent <LCOc1> was 22 cents firmer at $83.45.
Investors awaited the latest weekly reading of U.S.
unemployment figures due at 1230 GMT for clues about the health
of the world's largest oil consumer, and ahead of the
anticipated second monetary stimulus package (QE2).
Most economists expect the Federal Reserve to buy between
$80 billion and $100 billion worth of assets a month under a new
programme to shore up the economy of the world's largest oil
consumer, a Reuters poll found on Wednesday. []
Analysts expect oil prices to remain under pressure ahead of
the Federal Open Market Committee meeting, on fears that the
market may have already priced in the fresh round of monetary
stimulus.
"The price will remain above $80 until the Fed meeting and
then it depends on the outcome, but I think there's a good
chance that we will fall back below the $80 level next week when
Fed measures disappoint market expectations," Commerzbank's oil
analyst Carsten Fritsch said.
Oil prices on Thursday temporarily disconnected from the
dollar, which fell 0.4 percent against a basket of currencies
<.DXY>. The link between the greenback and crude earlier this
week was the strongest in 14 months.
"Just as the weaker dollar off the back of QE2 `pricing in'
has supported oil prices, a potentially stronger dollar off the
back of QE2 `pricing out' will likely undermine oil prices in
the weeks ahead," Daniel Hwang, senior strategist market
strategist at Gain Capital Forex.com wrote in a note.
MARKET WEIGHS LIKELY QE2 IMPACT
Estimates of the length and amount of the Fed's easing
programme varied widely, ranging 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.
"It's unlikely that QE alone is going to provide the
necessary stimulus for a recovery in commodities. I think there
needs to be a very firm underlying picture of economic health in
the U.S before we see any prolonged or sustained rally," Paul
Harris, a natural resource analyst at Bank of Ireland, said.
The U.S. unemployment figures due at 1230 GMT will total
453,000 compared to 452,000 in the previous week, according to
economists polled by Reuters.
The U.S. will also release GDP data on Friday, with third
quarter growth expected to show a modest rise to 2 percent from
1.7 percent in the prior quarter, lifted by an acceleration in
consumer spending, a Reuters poll showed. []
U.S. oil demand jumped last week but gasoline inventories
fell by 4.4 million barrels, 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. []
Strike action at six French oil refineries ended, but oil
shortages are likely to continue to bite as workers voted to
continue protests at France's two largest oil ports of
Fos-Lavera and Le Havre. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Anthony Barker)
