* Strong dollar, weak stock markets pressure oil
* Building floating storage shields weak demand
* Oil stuck in $75-$85 a barrel range
(Adds equity news, updates prices)
By Joe Brock
LONDON, Nov 20 (Reuters) - Oil fell more than $1 a barrel
towards $76 on Friday, pressured by a stronger U.S. dollar and
as falling equities raised concern about the economy and outlook
for energy demand.
U.S. crude for December delivery fell $1.06 cents to $76.40
a barrel by 1420 GMT. The December contract expires on Friday.
U.S. crude for January delivery was down $1.07 at $76.98.
London Brent crude slipped 96 cents to $76.68.
"The dollar, risk appetite and equity movements are the main
drivers for oil at the moment," said Carsten Fritsch, oil
analyst at Commerzbank in Frankfurt.
For the last month oil prices have traded mainly between $75
and $80 a barrel as mixed signals over economic recovery failed
to give a clear picture of the outlook for energy demand.
"I think we need to see a sustained shift in market
sentiment, not just one day to the next, then we could go below
$75 and weak fundamentals will be of more importance," Fritsch
added.
A lack of demand for oil products has led to very high
inventory levels being stored at sea as well as on land. Volumes
in floating storage are estimated to be around 90 million
barrels, more than total global daily oil consumption.
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Analysts say products being bought for floating storage,
often a financial strategy where the buyer is able to sell the
products on for a profit at a later date, has created the
illusion of improved demand.
DOLLAR SWINGS
"By the end of the winter there is likely to be as much
distillates afloat as in the total U.S. at the end of winter
2007 and we expect that it will be more and more difficult for
some of the Wall Street commodity banks to avoid mentioning the
subject and to continue to hide the floating storage fill-up as
'demand from emerging economies'," said Olivier Jakob, oil
analyst at Petromatrix in a research note on Friday.
Crude prices have swung with the dollar this week, jumping
over $3 on Monday and then shedding over $2 on Thursday as the
U.S. currency firmed against a basket of currencies.
As the dollar rises it makes commodities like oil priced in
the greenback more expensive for those holding alternative
currencies.
The dollar has been shifting in response to changing
perceptions of the U.S. economy.
U.S. stock market futures fell on Friday, along with
European equities after weak results from computer maker Dell
underscored the rocky road to economic recovery, sending
investors away from riskier assets. []
The technology sector is often viewed as one of the first to
recover from a recession, heightening the impact of Dell's
results.
(Editing by Angus MacSwan)
