* Oil rises above $106 on weakness in U.S. dollar
* U.S. oil demand running 5.3 percent below year ago
* Japan's August crude imports down 3.3 percent from year
ago
* Mexico's Pemex cuts oil output by 250,000 bpd due to Ike
(Releads, updates prices, analyst's comments)
By Fayen Wong
PERTH, Sept 25 (Reuters) - Oil rose above $106 a barrel on
Thursday, recouping most of the previous session's losses on a
weakening dollar and growing signs of tightening supplies, such
as falling U.S. inventories.
But evidence of slowing demand in the United States, the
world's largest energy consumer, and lingering uncertainty over
a $700-billion bank bailout plan, will probably keep gains in
check, analysts said.
U.S. light crude for November delivery <CLc1> rose 72 cents
to $106.45 a barrel by 0547 GMT, after having fallen 88 cents
to settle at $105.73 on Wednesday.
London Brent crude <LCOc1> gained 95 cents to $103.45,
after rising as much as $1.04.
"Oil is largely boosted by weakness in the U.S. dollar,"
said Mark Pervan, an analyst at Australia and New Zealand Bank
in Melbourne. "The U.S. may be closer to reaching a deal to
approving the bailout but there is still a lot of uncertainty
on its overall impact on the economy."
The dollar slid against the euro and the yen on Thursday,
hurt by lingering doubts over the U.S. government's proposed
$700 billion bank rescue plan. []
Oil has tumbled about 25 percent since hitting record highs
of more than $147 a barrel in mid-July, dragged down by
mounting evidence that high energy costs and economic woes were
cutting global fuel consumption.
In a further sign of slackening demand, a U.S. government
report showed nationwide oil demand over the past four weeks
running 5.3 percent below last year in the midst of mounting
economic turmoil in the country.
In Japan, the world's third-biggest oil consumer, crude oil
imports also fell 3.3 percent to 4.13 million barrels per day
in August from the same month last year, data from the Ministry
of Finance showed on Thursday. []
Still, analysts said slow recovery in oil and gas
production in the U.S. Gulf of Mexico, falling inventories in
the U.S. and lower OPEC supplies would continue to offer
support for prices.
Mexico is temporarily cutting its crude oil output by
250,000 barrels per day because of damage to U.S. refineries
from Hurricane Ike, state oil monopoly Pemex said on Wednesday
[]
U.S. refinery utilisation fell to the lowest level on
record in the week through Sept. 19, U.S. government data show,
reflecting shut-ins along the Gulf of Mexico caused by
Hurricane Ike this month. []
Crude stocks tumbled by 1.5 million barrels, less than
analysts' expectations for a 2-million-barrel fall, while
gasoline stocks fell for the ninth week by 5.9 million barrels
to their lowest level since 1967.
In the Gulf of Mexico, home to a quarter of U.S. oil
output, energy firms continued efforts to restart production at
refineries and pipelines after Ike battered U.S. oil
infrastructure in the biggest hit to the U.S. energy supplies
since the 2005 hurricane season.
Hurricane Ike destroyed 52 offshore platforms in the Gulf
of Mexico that produced a total of 13,300 barrels of crude oil
and 90 million cubic feet of natural gas each day, the U.S.
Mineral Management Service said on Wednesday. []
Some analysts noted that oil could well spike in the near
term as the northern hemisphere enters the peak winter season.
"Further spikes remain a distinct possibility going into
the northern hemisphere winter," Goldman Sachs' analyst Malcolm
Southwood said in a report.
(Editing by Clarence Fernandez)
