* U.S. Q4 GDP forecast to have grown 4.6 pct vs 2.2 pct in
Q3
* U.S. jobless claims fell less than expected last week
* Oil trading near 2010 lows
By Alejandro Barbajosa
SINGAPORE, Jan 29 (Reuters) - Oil was steady near $74 on
Friday, headed for a third consecutive weekly drop, as the
recovery of the U.S. economy has yet to boost fuel demand.
The U.S. economy probably grew at an annual rate of 4.6
percent in the fourth quarter, up from 2.2 percent in the
third, a Reuters poll showed ahead of the data, due at 1330
GMT. []
U.S. jobless claims fell less than expected last week, the
government reported on Thursday. President Barack Obama said in
his State of the Union address on Wednesday that job creation
would be his top priority.
"Even though the U.S. economy is growing, the key figure is
the unemployment rate," said Clarence Chu, an energy trader at
Hudson Capital Energy in Singapore.
"Until I see that the U.S. is consistently creating jobs
for a few months in a row, I'm not convinced that demand will
increase."
Oil demand in the U.S. shrank 2 percent in the past four
weeks from a year earlier. Japanese crude imports fell 2.6
percent in December and gasoline sales tumbled 2.4 percent, the
Ministry of Economy, Trade and Industry (METI) said on Friday.
[]
U.S. oil for March delivery <CLc1> gained 9 cents to $73.73
a barrel by 0504 GMT. Prices touched $72.65 on Wednesday, the
lowest intra-day price since Dec. 21, and are still down 12
percent from a 15-month high of just under $84 on Jan. 11.
London ICE Brent crude for March <LCOc1> climbed 11 cents
to $72.24.
Prices fell on Thursday after the U.S. dollar rose to its
highest level in more than six months against the euro, which
fell on concern over potential fiscal crises in European
economies including Greece and Portugal. []
A stronger dollar often indicates investors are funneling
cash away from riskier assets such as commodities. It also can
curb demand for crude oil from buyers who hold other
currencies, since oil is priced in dollars.
MORE FUEL EFFICIENCY, ALTERNATIVES
Oil use in OECD countries will never return to 2006 and
2007 levels because of more fuel efficiency and the use of
alternatives, International Energy Agency chief economist Fatih
Birol told Reuters on Thursday.
"I would expect that the oil price will trade within the
current range for the remainder of this year, (at) $60-80 per
barrel," BP <BP.L> chief executive Tony Hayward said on
Thursday on the sidelines of the World Economic Forum gathering
in the Davos Swiss ski resort.
Thursday's U.S. economic data cast further doubt over the
pace of economic recovery. More people than expected claimed
for jobless benefits last week and durable goods orders
increased less than forecast in December. []
"If you may lose your job next month, you are not going to
spend, buy a house, buy a car; you try to save as much as
possible," Chu said. "That is not helping the whole sentiment.
I am bearish in the near future."
OPEC discipline in cutting output over the past 15 months
is helping reduce an inventory surplus. Floating storage of
crude and products has been declining and now stands at between
75 million and 80 million barrels, Barclays Capital said.
"In a world where, in our view, $70 per barrel is
increasingly being looked at as being a barely sustainable
minimum, current prices are not generating much in the way of
excess rents," Barclays Capital analysts, headed by Paul
Horsnell, said in a report on Thursday.
"Key producing countries are increasingly signalling that
$70 per barrel is a borderline below which, if sustained, the
commitment to maintain capacity cannot be taken for granted,"
Barclays Capital said.
(With additional reporting by James Topham in Tokyo and Alex
Lawler in London)
(Editing by Clarence Fernandez)
