* European finance ministers debate risk of crisis spreading
* U.S. federal holiday, financial markets closed
(Adds context on Korean confrontation, updates prices)
By Alejandro Barbajosa
SINGAPORE, Nov 25 (Reuters) - Oil edged lower on Thursday,
after rising more than 3 percent a day earlier on strong U.S.
macro-economic data, as concerns about European debt lingered.
A surprise crude inventory gain in top consumer the United
States last week also pressured prices, with U.S. crude for
January <CLc1> down 15 cents at $83.71 a barrel by 0544 GMT,
after rising $2.61 or 3.2 percent on Wednesday, the biggest
percentage gain in four months.
ICE Brent <LCOc1> declined 24 cents to $85.60.
"At the moment, the tempo is more upbeat than when we
started the week, but nothing has gone away," said Geoff
Howie, sales and markets strategist at MF Global in Singapore.
"The biggest fear is that if there is volatility in
European markets, that will derail the inroads that the U.S.
has made this year, like it did in May."
Ireland unveiled an ambitious austerity plan to tackle its
debt crisis and secure an international bailout, but officials
gave mixed messages on whether its debt crisis could spread to
other euro zone members or even endanger the common currency.
[]
Oil tumbled to 2010 lows under $65 in May as the Greek
debt crisis dampened confidence about the global economic
recovery. They rebounded to a two-year high of $88.63 on Nov.
11.
Earlier this week, prices dropped to near $80 after North
Korea's deadly artillery barrage targeting a disputed South
Korean island that boosted the value of the dollar and reduced
the appetite for riskier commodity assets.
"We still have to see the full response through to the
Korean incident," Howie said.
South Korea ordered extra troops deployed on islands near
North Korea on Thursday with Pyongyang warning it would follow
its latest bombardment with more attacks if its wealthy
neighbour tried any "provocations". []
Initial jobless benefits claims in the U.S. fell to their
lowest level in more than two years last week while consumer
spending rose for a fourth straight month in October, reports
showed on Wednesday, fueling hopes the economic recovery is
strengthening. []
The New York Mercantile Exchange (NYMEX) is combining
trades for Nov. 25 and Nov. 26 into one single trading session
because of Thursday's Thanksgiving holiday in the U.S.
U.S. crude oil stockpiles rose 1.03 million barrels in the
week to Nov. 19 as crude imports jumped by more than a million
barrels per day, the U.S. Energy Information Administration
said on Wednesday.
Analysts polled by Reuters had expected crude stocks to
fall 2.1 million barrels, but the jump reported by the EIA was
much less than the American Petroleum Institute's report
showing stockpiles increased 5.2 million barrels.
Gasoline stocks rose 1.91 million barrels, the EIA said,
against expectations for a 600,000-barrel draw, and distillate
stocks fell 541,000 barrels, much less than analysts'
expectations for a larger 1.2 million-barrel draw.
(Editing by Himani Sarkar)
