* U.S. light crude not far above intraday 2010 low of $72.65
* U.S. Q4 GDP growth data due at 8:30 a.m. EST (1330 GMT)
* Reuters poll sees U.S. GDP up 4.6 pct vs 2.2 pct in Q3
* U.S., Japanese data point to lower oil consumption
(Updates prices)
By Christopher Johnson
LONDON, Jan 29 (Reuters) - Oil rose towards $74 per barrel
on Friday, finding some respite but still heading for its third
consecutive weekly drop on evidence fuel demand was lacklustre
despite recovery from the global downturn.
The market awaited U.S. economic growth data at 8:30 a.m.
EST (1330 GMT) for any signs that consumption in the world's
biggest oil consumer was recovering.
U.S. oil demand shrank 2 percent in the past four weeks from
a year earlier, figures this week said, while Japanese data
showed crude imports fell 2.6 percent in December and gasoline
sales tumbled 2.4 percent. []
U.S. oil for March delivery <CLc1> gained 31 cents to $73.95
a barrel by 1040 GMT. Prices touched $72.65 on Wednesday, the
lowest intra-day price since Dec. 21, and are down more than 10
percent from a 15-month high of just under $84 on Jan. 11.
London ICE Brent crude for March <LCOc1> climbed 34 cents to
$72.47.
"Oil is pausing for breath after quite a big fall over the
last few weeks," said Eugen Weinberg, commodities analyst at
Commerzbank. "But the mood has changed with traders now looking
for reasons to sell instead of reasons to buy."
"Current prices do not reflect the fundamentals of demand
and supply and could go a lot lower, although I think we will
see some stabilisation before the next move downwards."
"DOCTOR COPPER"
Weinberg said he was concerned that the oil market could see
a big drop similar to the move in copper this week.
Copper, known as "Doctor Copper" due to its value as a
forward indicator of economic activity because it is used for
construction and in industrial processes, dropped nearly 5
percent in London on Thursday and saw follow-through selling in
Asia on Friday. []
Traders are concerned that China may tighten monetary policy
sharply later this year, stifling global growth.
Edward Meir, senior commodity analyst at brokers MF Global
in Connecticut, said he was concerned that a selling frenzy
similar to the one that hit copper on Thursday could engulf oil
"particularly given the still sizable net long position held by
the funds in the (U.S.) crude contract".
"Our feeling is that it will not, given Thursday's rather
encouraging session where funds refused to bail out, this
despite weaker equities, crashing metal prices, and a much
stronger dollar," Meir said.
He suggested oil could stabilise or even rally over the next
two days, possibly back to the high $70s per barrel.
Key to sentiment on Friday will be the U.S. growth data.
A Reuters poll said the U.S. economy probably grew at its
fastest pace in nearly four years in the fourth quarter of last
year as businesses rebounded from the deep recession of a year
before and made less-aggressive cutbacks on inventories.
It forecast the U.S. economy grew at an annual rate of 4.6
percent in the October-December period, up from 2.2 percent in
the third quarter. []
Oil prices have been helped lower this week by a stronger
dollar, which rose to its highest level in more than six months
against the euro on concerns over potential fiscal crises in
European economies including Greece and Portugal. []
A stronger dollar often indicates investors are funnelling
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.
The chief executive of oil major Royal Dutch Shell <RDSa.L>
told Reuters Insider on Friday that oil would not go back to its
2008 peak level of more than $140 a barrel and was instead
expected to trade in a $60 to $80 range. []
This view found resonance in Tehran, where Iran's OPEC
governor was quoted on Friday as saying that oil prices would
not drop below $60 per barrel by July this year. []
(Editing by Veronica Brown)
