* China's economy picks up speed, Q2 GDP growth 7.9 pct y/y
* U.S. new jobless claims lowest since Jan., skewed by autos
* JPMorgan reports 36 percent rise in quarterly profit
* U.S. crude stocks down, gasoline up in July 4 week
(Updates prices, recasts, adds details)
By David Sheppard
LONDON, July 16 (Reuters) - Oil fluctuated around $61 a
barrel on Thursday as concerns about the strength of global fuel
demand were offset by strong economic growth in China and
better-than-expected U.S. banking results.
U.S. crude oil for August delivery <CLc1> was down 71 cents
to $60.83 a barrel by 1414 GMT, having earlier hit a low of
$60.29 a barrel. On Wednesday, prices had rebounded by almost
$2, recovering some of the losses which have seen prices decline
by about 15 percent since the end of June.
London Brent crude slipped 49 cents to $62.60 ahead of the
August contract's expiry later on Thursday.
Mike Fitzpatrick, vice president at MF Global in New York
said the market was trying to decide how high oil prices can
rise given the still fragile economy.
"$60 is the fulcrum balancing the price lever that tips
whenever one contention or another is bolstered by news or
economic data," Fitzpatrick said.
China, the world's second largest energy consumer, saw
surprisingly strong growth of 7.9 percent in the second quarter,
fuelled by state spending and bank lending, making it the
best-performing major economy in the world. []
But doubts about the pace of recovery in other major energy
consuming economies has kept a lid on prices, with investors
turning cautious as every piece of encouraging economic news
appears to be offset by signs there is still a long way to go.
OIL STOCKS
The global slowdown has cut world oil demand by as much as
2.5 million barrels per day, according to the International
Energy Agency.
New jobless claims in the United States, the world's largest
energy consumer, fell to their lowest level since January on
Thursday, but the Labor Department was keen to emphasise an
unusual pattern in automotive layoffs had amplified the drop.
[]
JPMorgan and Chase & Co <JPM.M> reported a 36 percent rise
in quarterly profit, topping Wall Street forecasts. But the bank
warned that credit quality in consumer mortgages and credit
cards was deteriorating faster than expected. []
Also highlighting the ongoing problems facing the world
economy is the looming bankruptcy of CIT Group Inc <CIT.N>, a
lender to hundreds of thousands of small and mid-sized U.S.
businesses, after bailout talks with the U.S. government fell
apart. []
Oil's large gains on Wednesday came after the U.S. Energy
Information Administration (EIA) said commercial crude oil
stocks fell 2.8 million barrels last week, against market
expectations of a 1.6 million barrel fall. []
The fall in crude stocks overshadowed a larger-than-expected
rise in U.S. gasoline supplies over the Fourth of July
Independence Day holiday weekend -- the traditional peak of the
U.S. summer driving season.
Analysts said demand was expected to pick-up, but uncommonly
high levels of fuel stocks were likely to continue to pressure
prices.
(Additional reporting by Fayen Wong in Perth; Editing by Jon
Boyle)
