* New U.S. housing starts and permits jump in June
* Oil heads for 5th day of gains; 1st weekly rise in a month
* Bank earnings disappointing
* China June refinery output at new record
(Updates detail, comment prices)
By Christopher Johnson
LONDON, July 17 (Reuters) - Oil bounced above $62 a barrel
on Friday, buoyed by U.S. data suggesting the battered housing
sector was beginning to stabilise and pointing to a gradual
recovery from recession.
Oil was on track for a gain of more than 4 percent on the
week, snapping four straight weeks of declines thanks to
stronger equities markets, better corporate results and positive
economic data, particularly from Asia.
U.S. crude oil for September delivery <CLc1> was up 60 cents
at $62.62 a barrel by 1339 GMT. London Brent crude rose 60 cents
to $64.35.
Oil prices slipped in early trade as the market consolidated
after four days of gains and was undermined by a jump in the
value of the dollar. Oil often moves inversely to the dollar as
a rise in the U.S. currency makes oil more expensive to many
consumers.
But the market then recovered on data showing new U.S.
housing starts and permits jumped in June, propelled by a rise
in ground-breaking for single-family homes and suggesting the
battered housing sector was beginning to stabilise. []
BOUNCE OFF LOWS
"Looks like some initial profit taking after (a) good rally
on the week. Certainly dollar strength was part of the early
decline," said Tom Bentz, analyst at BNP Paribas Commodities
Futures Inc.
"Then June housing starts came in (at) 3.6 percent, better
than expected, providing a bounce off lows," he said.
Bank of America <BAC.N> posted lower earnings on Friday and
Citibank <C.N> relied on a one-off gain to turn a profit,
following strong showings from their peers which have driven
stocks higher. []
Some analysts had suggested Friday's corporate results might
provide some upside surprises after strong figures earlier this
week from Goldman Sachs <GS.N>.
Economic data are sending mixed messages about the pace of
recovery from recession.
Nouriel Roubini, one of the few economists who accurately
predicted the magnitude of the financial crisis, said on
Thursday the worst of the turmoil had passed, but said the
United States would need a second fiscal stimulus, possibly by
the end of this year, as the unemployment rate approaches 10
percent. []
In China, refiners in the world's No.2 energy consumer
boosted production by 6 percent in June to a record high after a
rise in domestic motor fuel prices aided margins, although
higher inventories and rising exports suggested domestic demand
was lagging. []
Oil prices are down nearly $10 since early July, partly
reversing last quarter's 40 percent surge on concerns over
energy demand, which has contracted for the first time in a
quarter century under the weight of the recession.
(Additional reporting by Fayen Wong in Perth; editing by
Michael Kahn)
