* Fall in U.S. equities drags price lower
* Prices stuck in narrow $7 range
* Warm U.S. weather; high stocks set ceiling
(Updates prices, quotation)
By Edward McAllister
NEW YORK, Nov 19 (Reuters) - U.S. crude futures fell more
than 2 percent on Thursday as a stronger dollar weighed and
weaker equities raised concern about the economy and a
potential rebound in energy demand.
U.S. crude prices for December delivery <CLc1> fell $2.05
to $77.53 a barrel by 1:51 p.m. EST (1851 GMT). Brent crude
<LCOc1> for January delivery fell $1.75 to $77.72.
"Crude futures are down today because the stock market is
under selling pressure as investors are assessing where the
economy is really going," said Peter Beutel, president of
Cameron Hanover in Stamford, Connecticut.
Investors have scoured economic data in recent months for
signs of a recovery that might boost global energy demand.
U.S. stocks fell, with all major indexes down more than 1
percent on weakness in the technology and health insurance
sectors. []
The dollar rose against the euro on Thursday, moving up
from 15-month lows earlier in the week. A stronger dollar makes
dollar-denominated commodities like oil more expensive for
holders of other currencies and tends to pressure prices.
[]
U.S. oil prices rose on Wednesday above the key $80 a
barrel level after government data showed a drop in crude and
product inventories in the world's largest oil consumer.
[]
Crude stocks fell a more-than-expected 900,000 barrels and
while distillate stocks including diesel and heating oil fell
300,000 barrels, this was less than analyst projections.
FLOATING STOCKS
But analysts said mild weather in the United States and
high global oil products stocks held in storage on land and on
floating vessels would limit oil's potential upside.
Floating stocks of oil products, mostly distillates, are
set to rise to over 97 million barrels by the end of the year,
according to Reuters estimates. []
"Temperatures are unseasonably mild in the United States
and crude is holding the range between the high $70s and low
$80s," said Peter McGuire, managing director of CWA Global
Markets.
Since hitting a high of $82 a barrel in October, U.S.
prices have traded in a narrow $7 band.
On the supply side, the Organization of the Petroleum
Exporting Countries should hold oil output steady when it meets
in December as current prices do not suggest the need to change
supply, the head of Libya's National Oil Corporation said on
Wednesday. []
Implied oil volatility is the lowest since February 2008,
back near levels before last year's surge to a record high.
<CLATMIV>
For a graphic showing oil prices and implied volatility,
click:
http://graphics.thomsonreuters.com/119/CMD_OLVLTY1109.gif
The market shrugged off news that the number of additional
U.S. workers claiming unemployment benefits was unchanged at
505,000 in the week ending Nov. 14. []
(Additional reporting by Robert Gibbons and Gene Ramos in New
York, Emma Farge in London and Nick Trevethan in Singapore;
Editing by Christian Wiessner)
