* Oil falls on large build in U.S. crude stocks
* EIA data showed rise in U.S. oil product stocks
* Dollar stages a broad rally, undermines oil prices
(Updates prices)
By Felicia Loo
SINGAPORE, Nov 13 (Reuters) - U.S. crude oil dipped on
Friday to below $77 a barrel, weighed down by gains in the
dollar and a bigger-than-expected build in U.S. crude
inventories.
The bounce in the dollar fuelled profit-taking in
commodities such as gold and oil, while a fall in Asian
equities supported the dollar as a safe haven trade.
A U.S. Energy Information Administration report that showed
a rise of 1.8 million barrels in crude oil stocks last week saw
oil dropping nearly 3 percent in the previous session, to
settle at $76.94 a barrel.
"It's a reality check. There's a build-up in inventories
and the market got sold off," said Tony Nunan, risk management
executive at Mitsubishi Corp in Tokyo.
The U.S. government data was more bearish than an earlier
industry report of a 1.2 million-barrel build and far greater
than the forecast rise of just 600,000 barrels in a Reuters
poll. []
By 0606 GMT, U.S crude futures <CLc1> were down 4 cents to
$76.90 a barrel. Brent crude futures <LCOc1> inched up 6 cents
to $76.08 a barrel.
Although oil prices have risen 77 percent so far this year,
they are still nearly 47 percent below their high of more than
$147 a barrel struck in July last year.
However, firm Chinese oil demand put a lid on the oil price
drop.
China's annual GDP growth rate could reach 10 percent in
the fourth quarter as the economic recovery exceeds
expectations, with full-year economic growth at about 8.3
percent, said Fan Jianping, chief economist with the State
Information Centre. []
He added that next year's economic growth was unlikely to
bring inflation risks, with the consumer price index possibly
rising about 2.5 percent.
NAGGING CONCERNS
The recovery of the global economy, however, is seen choppy
and worries of fundamental oil demand set in, following a rise
in U.S. oil product inventories. EIA data showed distillates
logging an unexpected increase of 300,000 barrels and gasoline
up 2.5 million barrels.
Christophe de Margerie, chief executive of French oil major
Total SA <TOTF.PA>, said low global demand did not justify the
current high price for oil, above $76 a barrel. []
Undermining oil markets, the greenback staged a broad rally
due to data showing a drop in U.S. jobless claims and fuelled
by lower commodity prices and weaker equities. []
Investors wary of riskier assets such as high-yield
currencies and book profits as several policymakers warn the
economic recovery is still fragile. For more see []
The dollar bounced on Friday as investors wondered if U.S.
President Barack Obama's nine-day visit to Asia would generate
pressure on some countries to let their currencies rise.
[]
Against a basket of currencies the dollar <.DXY> <=USD> was
up at 75.596 and off 15-month lows of 74.774, though it remains
within a downtrend channel that stretches back to May.
Oil and the dollar tend to be inversely correlated because
a weak dollar makes the commodity cheap for non-dollar buyers,
and vice versa.
The number of U.S. workers filing new claims for jobless
benefits last week fell to the lowest level since January, the
government said on Thursday, showing the hard-hit labor market
may be slowly improving. []
(Editing by Clarence Fernandez)
