* Hurricane Center sees 10 pct chance of storm forming
* Coming Up: U.S. consumer prices, BofA, Citi Q2 results
* For a technical view, click []
(Changes throughout, previously SINGAPORE)
By Joe Brock
LONDON, July 16 (Reuters) - Oil was slightly lower on
Friday, hovering above $76 a barrel, as lacklustre economic
indicators left doubts in the minds of investors over the
strength of global energy demand.
U.S. crude for August <CLc1> fell 22 cents to $76.40 a
barrel by 0828 GMT, extending Thursday's slide of more than 0.5
percent. The contract was heading for its second consecutive
weekly increase, however, trading a few cents higher than last
Friday's close.
London Brent's new front-month September crude oil futures
<LCOc1> were down 34 cents at $75.75.
"Yesterday we got some negative U.S. economic data which is
weighing on prices but the weaker U.S. dollar is lending
support," said Carsten Fritsch, oil analyst at Frankfurt-based
Commerzbank.
Poor U.S. industrial data was partially offset by positive
jobs numbers on Thursday, leaving a cloudy outlook for the
economic health of the world's largest energy consumer.
But analysts said overall the data highlighted the fragility
of the U.S. economic recovery.
"The manufacturing data is more important because it is
forward looking. The jobs data is lagging behind," Fritsch said.
The U.S. dollar was pressured by the manufacturing numbers,
helping to support oil prices. A weaker dollar makes commodities
like oil cheaper for some buyers holding alternative currencies.
U.S. crude prices have traded in a range between $71 and $80
for almost six weeks as volatility related to the European debt
crisis dwindled.
Over the year, they have stayed within a $23 range, hitting
a 19-month peak above $87 and a trough below $65, both in May.
ECONOMIC DATA
U.S. claims for jobless benefits tumbled to a near two-year
low last week, data showed on Thursday, but industrial
production in the world's largest fuel consumer slowed sharply
last month and manufacturing output snapped a three-month streak
of increases. []
Japan's Nikkei average shed almost 3 percent on Friday but
European stocks steadied after losses suffered in the previous
session, aided by news BP <BP.L> has capped its leaking well in
the Gulf of Mexico. []
An oceanic weather system in the central Caribbean had a 10
percent chance of strengthening into a tropical cyclone over the
next two days, the U.S. National Hurricane Center said. It was
days away from potentially entering the oil-rich Gulf of Mexico.
BP Plc <BP.L> <BP.N> said on Thursday it stopped the flow of
oil into the Gulf of Mexico from its deep-sea well for the first
time since it ruptured in April, prompting hope that the leak
can be plugged for good. []
The market's attention will later turn to U.S. consumer
prices and the Reuters-University of Michigan sentiment index,
along with second quarter results from Bank of America <BAC.N>
and Citigroup <C.N> due on Friday.
(Additional reporting by Alejandro Barbajosa in Singapore;
Editing by Anthony Barker)
