* Crude falls below $81/bbl from 12-month high as dlr gains
* Options eyed; gasoline drawdown, China growth support
* Technically positive, targets $85-$90/bbl; but RSI
oversold
(Updates prices)
By Nick Trevethan
SINGAPORE, Oct 22 (Reuters) - U.S. crude oil fell almost 1
percent on Thursday, weighed down by gains in the dollar, but a
big drawdown in U.S. gasoline stocks, a weak longer-term
outlook for the greenback and positive technicals all
supported.
A U.S. Energy Information Administration report showing a
larger-than-expected 2.3 million barrel draw in gasoline stocks
last week saw oil rally 2.8 percent in the previous session to
settle at $81.37, its highest since Oct. 9, 2008.
"Oil is in an upward trend. The dollar is under fire.
Inventories are a bit of an issue, but I wouldn't be surprised
to see crude take out $83 to $85 by month end," said Peter
McGuire, managing director of CWA Global Markets in Sydney.
"That's sustainable possibly for the rest of the quarter
but it really all depends on the U.S. dollar."
NYMEX crude for December delivery <CLc1> fell 74 cents or
0.9 percent to $80.63 a barrel by 0659 GMT, trading a range
between $80.59 and $81.50. London Brent crude <LCOc1> fell 69
cents to $79.00 a barrel. The dollar rose above $1.50 against
the euro <EUR=> and away from a 14-month low against a basket
of currencies <.DXY>, but expectations that the U.S. Federal
Reserve will lag other central banks' interest rate rises mean
the longer-term outlook for the greenback remains weak.
OPTIONS EYED
The market is keeping a close eye on the options market
where a large number of calls at strike prices between $80 and
$100 could drag futures prices higher as options granters buy
oil against the risk that those options will be exercised.
"From our perspective, as the price moves towards the
strike, we hedge by buying the future, which can drive prices
higher, bringing fresh strikes into the money and so on," a
Singapore trader said.
While a number of technical chart patterns are positive,
the relative strength indicator at around 80 to 85 for the past
week, is its most overbought since late May and June,
suggesting the market needs a period of consolidation.
"Technicals are quite bullish. Support, resistance and MACD
all point higher," a second trader in Singapore said.
"On a daily chart, the next level is about $90, although I
expect some psychological resistance at $85. But I think it
will run out of steam and will return to the $65-75 range."
Investors were also likely to be reassured after data
showed China's annual GDP growth quickened to 8.9 percent in
the third quarter, in line with expectations for the world's
second biggest oil consumer. []
The country's September refinery crude throughput rose 14
percent from a year earlier to a record of 32.83 million
tonnes, or 7.99 million barrels per day. []
(Editing by Michael Urquhart)
