* U.S. crude earlier touched 2-1/2 year high of $113.70/bbl
* Lower North Sea supplies lend support to Brent
* Weak U.S. GDP, jobs data supports dollar-denominated crude
(Recasts, adds new quotes, details)
By Emma Farge and Caroline Copley
LONDON, April 28 (Reuters) - U.S. cryde prices pared gains
on Thursday as weaker-than-expected economic growth in the
world's top economy partly offset a sliding dollar and signs of
lower North Sea supplies.
U.S. crude for June rose 30 cents to $113.06 a barrel by
1334 GMT, after touching the highest in 2-1/2 years of $113.70 a
barrel.
Brent crude futures were up 47 cents at $125.60 a barrel by
the same time.
"We see a soft patch in economic activity in Q2 and with oil
prices sustained at these levels, people will be looking more
intently at signs of demand destruction," said Harry
Tchilinguirian, head of commodity markets strategy at BNP
Paribas.
"The oil market is balancing upside and downside risk to
prices, and as these factors appear to even out, oil prices have
consolidated and we are more or less range-bound."
Oil prices were volatile as traders grappled with data
showing U.S. economic growth slowed to 1.8 percent in the first
quarter as higher food and gasoline prices dampened consumer
spending. []
A jump in U.S. claims for unemployment benefits to their
highest level since January also weighed on sentiment, with the
data signaling an anticipated recovery in the labour markets may
take some time. []
But the economic weakness is expected to keep the U.S.
Federal Reserve's monetary policy loose, weighing on the dollar
which fell to a three-year low and boosting dollar-denominated
oil.
"The weaker dollar supports crude and the jobless report
seems to indicate the Fed is going to continue its fight against
unemployment at the expense of interest rates and the U.S.
dollar," said Peter Beutal, president at Cameron Hanover in New
Canaan, Connecticut.
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For a 24-hour technical outlook on Brent:
http://graphics.thomsonreuters.com/WT1/20112804084047.jpg
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Earlier on Thursday, signs of lower supplies from the North
Sea had boosted the Brent benchmark, after traders said at least
two Forties cargoes had been cancelled and others delayed from
the May loading programme.
Light, sweet oil sourced from the North Sea has served as a
vital substitute for Libyan exports which are virtually
paralysed due to conflict and international sanctions.
Oil prices are still carrying a hefty risk premium due to
political unrest in the Middle East, with Ben Westmore of
National Australia Bank estimating this as high as $20-$25.
(Additional reporting by Manash Goswami in Singapore;
editing by William Hardy)
