* Burgeoning U.S. oil stocks highlight demand weakness
* Q4 Chinese GDP could hit 10 percent growth
* BofA-Merrill Lynch raises 2010 crude price forecast to $85
(Updates prices, adds details)
By David Sheppard
LONDON, Nov 13 (Reuters) - U.S. crude oil fell below $76 a
barrel on Friday, hitting its lowest level in almost a month as
bulging fuel inventories in the United States highlighted the
weakness of demand.
By 1436 GMT, U.S crude futures <CLc1> were down 97 cents at
$75.97 a barrel, having fallen by more than $2 in the previous
session. Earlier on Friday, prices touched $75.73 a barrel, the
lowest level since mid-October.
Brent crude futures <LCOc1> fell 62 cents to $75.40.
Crude's losses on Friday extended a 3 percent drop seen in
the previous session after the U.S. Energy Information
Administration (EIA) reported crude and product stocks in the
world's largest energy consumer rose more than expected last
week.
Market analysts said the 1.8 million barrel rise in U.S.
crude oil stocks and 2.5 million barrel rise in gasoline stocks
highlighted the fact demand remains weak heading into the
Northern Hemisphere winter, with the economic slowdown still
curbing demand for fuel.
"The weekly implied demand numbers coming from the U.S. are
not all that encouraging and suggestive that the economic
recovery may be very slow in the United States," Dominick
Chirichella, senior partner at the Energy Management Institute
in New York.
Oil prices have more than doubled since crashing to lows
near $30 a barrel at the peak of the economic crisis, but they
are still nearly 47 percent below their high just above $147 a
barrel struck in July 2008.
Doubts about the rally continuing have been expressed by
some of the biggest names in the oil industry.
"Today the price of oil may be $70 or $80, tomorrow it may
even be $90," Christophe de Margerie, CEO of French oil major
Total <TOTF.PA>, said after a panel discussion at Columbia
University in New York on Thursday.
"But I'll tell you this. If you look at supply and demand,
the price should be lower." []
Separately, Exxon Mobil Corp <XOM.N> Chief Executive Rex
Tillerson said winter heating demand alone was unlikely to
significantly reduce the global fuel inventory glut.
[]
FUNDAMENTALS VS DOLLAR
Oil analysts have pointed to weakness in the dollar as one
of the key reasons for this year's move higher in commodities.
Weakness in the greenback makes dollar-priced commodities such
as oil and gold attractive as a physical hedge for investors,
while they also become cheaper for holders of other currencies.
The dollar bounced on Thursday after finding some support
against the euro around the $1.50 mark. But after rallying
almost 1.5 cents in 24 hours, the dollar steadied against the
single currency on Friday. []
Gold <XAU=> prices have soared to record highs above $1,120
an ounce due to the dollar's near 25 cent loss against the euro
since March.
Expectations of a strong rebound in energy demand, led by
the emerging economies of China and India, have also encouraged
investment in oil.
China's annual GDP growth rate could reach 10 percent in the
fourth quarter of 2009 as the economic recovery exceeds
expectations, said Fan Jianping, chief economist with the State
Information Centre. []
The International Energy Agency, adviser to 28
industrialised nations, said on Thursday the world would use
more oil in the fourth quarter of this year than in 2008 due to
a rebound in energy demand in Asia. []
Bank of America-Merrill Lynch raised its 2010 U.S crude oil
price forecast to $85 a barrel from $75 on Friday, saying
stronger demand, loose monetary policy and a weak dollar could
see prices spike to $100 by 2011. []
(Additional reporting by Felicia Loo in Singapore; Editing by
Keiron Henderson and Sue Thomas)
