NYMEX-Crude turns lower on pre-expiry trade, economy

* NYMEX September crude set to expire at close

* Jobless claims, other data offer mixed economic picture

NEW YORK, Aug 20 (Reuters) - U.S. crude oil futures changed
gears and were lower Thursday afternoon as traders were closing
out positions on the front-month September crude contract,
which will expire at the close of the floor trading session.

A mixed bag of economic data earlier in the day raised more
worries about the U.S. recovery, pressuring prices lower.

"It's expiration day volatility and the market is trying to
decide if October crude should be at what would be a new 2009
high price at the rollover," said Phil Flynn, analyst at
PFGBest Research in Chicago.

Heating oil and gasoline futures lost more ground, reacting
to continuing tepid demand amid bulging supplies.

"The petroleum markets are seeing some light profit-taking
following Wednesday's rally, but most traders seem to be
sticking around to see if there might be another bullish shoe
to drop," said Tim Evans, analyst a Citi Futures Perspective in
New York.

"The S&P 500 watchers will want to see if that market
extends its own gains," Evans added.

Crude futures rose more than $3, nearly 5 percent, on
Wednesday after the Energy Information Administration said that
crude oil stocks fell 8.4 million barrels last week. [EIA/S]

Distillate stocks dipped by 700,000 barrels and gasoline
stocks fell 2.1 million barrels, the EIA said.

PRICES

* On the New York Mercantile Exchange at 1:30 p.m. EDT
(1730 GMT), September crude CLU9 was down 57 cents, or 0.79
percent, at $71.85 a barrel, trading $71.65 to $72.88.

* The day's high is the highest since the June 30 peak of
$73.38, which was the highest intraday front-month crude oil
price since crude hit $75.69 on Oct. 21.

* NYMEX October crude CLV9 was down $1.14, or 1.53
percent, at $73.45 a barrel, trading $73.10 to $74.07.

* In London, October Brent crude LCOV9 was down 79 cents,
or 1.06 percent, at $73.80, trading $73.53 to $74.78.

* NYMEX September RBOB RBU9 slid 5.86 cents, or 2.88
percent, to $1.9760 a gallon, trading from $1.9755 to $2.0435.

* NYMEX September heating oil HOU9 shed 3.15 cents, or
1.64 percent, at $1.8872 a gallon, trading from $1.8808 to
$1.9266.

* The September/September RBOB crack spread <0#RB-CL=R> was
at $11.14, after ending at $13.03 on Wednesday. The
September/September heating oil crack spread <0#CL-HO=R> was at
$7.41, after ending at $8.17 on Wednesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $15.36, based
on the September 2014 contract Wednesday settlement at $87.21.
The spread ended Wednesday at $14.79.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $69.97/$69.50

Technical support/resistance:

NYMEX crude: $71.82/$74.51

NYMEX heating oil: $1.8981/$1.9466

NYMEX RBOB: $2.0219/$2.0855

For a full report on technicals, click on [ID:nLK005750]

MARKET NEWS

* U.S. stocks rose after a rebound in Chinese equities and a
surprising expansion in U.S. regional manufacturing offset
weekly jobless claims that increased for a second week. [.N]

* OPEC seaborne oil exports, excluding Angola and Ecuador,
will be flat at 22.59 million barrels per day in the four weeks
to Sept. 5, said Roy Mason, an analyst at UK consultancy Oil
Movements. [ID:nWLA1585]

* The number of U.S. workers filing new claims for jobless
benefits unexpectedly rose last week and the number of people
collecting long-term unemployment benefits edged up, raising
worries of an anemic recovery. [ID:nN20510281]

* Factory activity in the U.S. Mid-Atlantic region turned
positive in August, breaking a 10-month contraction, as new
orders increased, a Fed survey showed. [ID:nN20516471]

* The Conference Board's index gauging the U.S. economy's
prospects rose for a fourth straight month in July, indicating
the recession was leveling out. [ID:nN20513774]

* Hurricane Bill weakened and was on a northwest ocean
track that will take it between Bermuda and the East Coast, the
National Hurricane Center said. Bill did not threaten U.S. oil
facilities. [ID:nN20522839]
(Reporting by Gene Ramos and Robert Gibbons; Editing by
Marguerita Choy)