* U.S. product inventories rise, crude off - EIA
* Qatar to raise crude allocations to Asia
* Non-farm payrolls the next major clue on the economy
(Updates prices, adds China crude stocks)
By Fayen Wong
PERTH, July 2 (Reuters) - Oil prices were little changed
just above $69 a barrel on Thursday, after falling in the
previous session on data showing a larger-than-expected
increase in U.S. gasoline stocks, which dented hopes of a
demand recovery.
The next major clue on the economy of the world's top
energy consumer will come from the widely watched U.S. non-farm
payroll report for June out later Thursday, which is expected
to show unemployment at a 26-year high of 9.6 percent.
[]
U.S. crude for August delivery <CLc1> edged down 9 cents to
$69.22 a barrel by 0722 GMT. The contract settled 58 cents
lower at $69.31 on Wednesday.
London Brent crude <LCOc1> fell 6 cents to $68.73.
"The overall economic sentiments are very weak so oil
prices could see more selling pressure. Furthermore, prices
have also jumped more than 40 percent in the last quarter, so
investors would be happy to lock in profits," said Benson Wang,
a trader at Commodity Broking Services in Sydney.
Gasoline stockpiles in the world's top consumer rose by 2.3
million barrels last week, above analysts' forecasts, data from
the U.S. Energy Information Administration showed. []
Distillate inventories, including diesel, increased by 2.9
million barrels, while crude stockpiles fell by 3.7 million
barrels.
The swell in gasoline stocks, which comes ahead of the July
4 Independence Day holiday -- traditionally the peak of the
summer driving season -- reflects a continued weakness in fuel
demand and suggests that a recovery in energy consumption in
the world's largest economy was at a much slower pace than some
analysts had expected.
Rising retail fuel prices in China and India, where both
governments this week unexpectedly raised gasoline and diesel
prices by as much as 10 percent, could also become a potential
deterrent to demand growth. [][]
China's crude oil stocks were at record high levels at the
end of May, but the gains narrowed compared with past months,
as hefty oil imports were largely consumed because of refiners'
record operational levels. []
The economic crisis has battered fuel demand worldwide,
sending crude off record highs above $147 a barrel hit last
July. But a weak U.S. dollar and optimism that a potential
economic recovery could push demand higher has helped crude to
jump 42 percent in the last quarter -- the strongest quarterly
gain since 1990.
But recent data in the United States, including weak
consumer spending and gloomy unemployment numbers, as well as
evidence from Europe and Asia suggest a global economic
recovery will be choppy this year, if it occurs at all.
On the supply side, rising output from OPEC is also putting
downward pressure on crude prices, with a Reuters survey
showing OPEC output rose in June, with members' compliance with
agreed cuts at 72 percent last month, a fall from 75 percent in
May. []
Qatar has notified at least two Asian term buyers that it
will supply its Marine crude at full contracted volumes for
August, compared with a 14 percent supply curbs for July,
sources at the firms said on Thursday. []
(Reporting by Fayen Wong; Editing by Michael Urquhart)
