* China's mixed Q1 GDP data limits gains
* Focus on U.S. weekly jobless claims due at 1230 GMT
(Recasts, updates prices, adds comment, previous SINGAPORE)
By David Sheppard
LONDON, April 16 (Reuters) - Oil edged towards $50 a barrel
on Thursday, but gains were limited as mixed data from China and
the United States reminded investors that any signs of economic
recovery were still only tentative.
U.S. crude for May delivery <CLc1> was up 64 cents at
$49.89 a barrel by 1033 GMT, after rising to $50.30 earlier in
the session. ICE Brent crude for the new front-month of June
<LCOc1> was up 69 cents at $53.13 a barrel.
China, the world's second-largest energy consumer, said its
economy grew a slower-than-expected 6.1 percent in the first
quarter, but also showed improvements in March, signalling the
worst of the slowdown could be over. []
In the United States, guardedly positive comments on the
economy from the Federal Reserve sparked a late equity rally on
Wall Street on Wednesday. []
However, the extent of the slowdown was illustrated by
consumer price data for March showing the U.S. is experiencing
deflation for the first time in nearly 54 years.
"Oil is only being supported near $50 a barrel by much
higher prices along the forward curve, as the market expects
fundamentals to improve towards end of the year," Bache
Commodities broker Christopher Bellew said.
Oil contracts for delivery in December are trading near $60
a barrel.
The Organization of the Petroleum Exporting Countries (OPEC)
said on Wednesday world oil demand would fall by 1.37 million
barrels per day (bpd) in 2009, revised from its previous
forecast for a fall of 1.01 million bpd. []
Both the International Energy Agency (IEA) and U.S.
government agency EIA have also slashed their global demand
forecasts as the worldwide slowdown curbs consumption.
But OPEC production cuts and a possible economic recovery
are expected to tighten the market later this year.
The drop in demand has seen U.S. crude oil inventories soar
to their highest level since September 1990, gaining 5.6 million
barrels last week alone, the Energy Information Administration's
weekly report showed on Wednesday. []
"The U.S. inventory stats were really, really bad and we
expected oil to fall to around $43 to $48, but the bottom was
pretty firm even with the terrible data," said Tony Nunan, risk
manager at Tokyo-based Mitsubishi Corp.
"It looks like the market has found its bottom, but it's
going to struggle to go up from here."
The market will be eyeing U.S. weekly jobless claims, due
later in the day, for further clues to the state of the economy.
A Reuters poll of economists forecasts a total of 655,000
new filings, versus 654,000 in the prior week.
(Editing by James Jukwey)
