NYMEX-Crude falls towards $66, paring 6 pct jump

                                
 TOKYO, July 31 (Reuters) - U.S. crude futures fell towards
$66 a barrel on Friday, paring the previous day's nearly 6
percent jump, ahead of data that is expected to show the U.S.
economy contracted in the second quarter.
                                
 FUNDAMENTALS
                                
 * September crude for September delivery <.CLc1> was down 41
cents at $66.53 a barrel by 0000 GMT, after settling up $3.59, or
5.7 percent, at $66.94 a day earlier. That nearly erased a 5.8
percent loss posted on Wednesday after U.S. data showed a steep
build in the top consumer's crude inventories. [EIA/S]
                                
 * Thursday's gains came amid economic optimism after the
number of U.S. workers staying on jobless rolls fell to the
lowest in three months last week. [ID:nN30338472]
                                
 * U.S. crude oil imports from Saudi Arabia fell 37 percent in
May from a year earlier to the lowest level in two decades, the
Energy Department said on Thursday, as the effects of OPEC
production cuts and lower American oil demand due to a weak
economy kicked in. [ID:nN30382522]
                                
 * U.S. President Barack Obama braced the country for more bad
economic news on Thursday, saying second-quarter GDP figures due
out on Friday would show the economy contracted and job losses
were still a "huge" problem. [ID:nN30376163]
                                
 A Reuters poll of economists showed a median forecast of a
1.5 percent contraction in the U.S. economy in the second
quarter, compared with a more dramatic 5.5 percent contraction
recorded for the first quarter.
                                
 * Japan's jobless rate rose in June to 5.4 percent, matching
a high hit in June 2003, and job availability sank to a new
record low, data showed on Friday, reinforcing views that it will
take time for job markets to recover despite recent improvements
in corporate activity. [ID:nTKG006437]
                                
 MARKETS NEWS
                                
 * U.S. stocks rose on Thursday as solid corporate profit
reports and a drop in the number of Americans on jobless benefits
gave investors reasons to buy equities following the S&P 500's
two days of losses. [.N]
                                
 * The U.S. dollar weakened against major currencies on
Thursday as a rebound in global stocks and commodities on
optimism about an economic recovery worldwide dimmed the
greenback's safe-haven allure. [USD/]
                                
 DATA/EVENTS
                                
 * The following data is expected on Friday:
                                
 - 0900 GMT-Euro Zone Inflation/July
                                
 - 0900 GMT-Euro Zone Unemployment/June
                                
 - 1230 GMT-U.S. Real GDP/2nd Qtr
                                
 - 1300 GMT-NY Nat'l Assn Purchasing Mgrs Index/July
                                
 - 1345 GMT-Chicago Purchasing Mgrs Indes/July
                                
 RELATED NEWS
> Obama: GDP figures to show contraction, job loss   [nN30376163]
> US Senate votes to penalise Iran gasoline suppliers[nN30373433]
                                
 PRICES
 Oil prices as of 0000 GMT          
 Contract Mnth    Price  Change  Day ago     pct     MA-20*
 NYMEX Contracts
 US Crude SEP9   $66.53   -0.41   +$3.59  +5.67%     $63.78
 Heat Oil AUG9   175.95   -0.92    +9.74  +5.83%     165.09
 RBOB     AUG9   198.99   -0.12   +13.61  +7.34%     178.25
 Natgas   SEP9   $3.696  -0.047  +$0.195  +5.50%     $3.534
 ICE Contracts
 Brent    SEP9   $69.75   -0.36   +$3.58  +5.38%     $65.08
 Gasoil   AUG9       --   +0.00  +$21.75  +4.01%    $525.66
 Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
 * = 20-day moving average for continuation month.
 (Reporting by Osamu Tsukimori; Editing by Chris Gallagher)