NYMEX-Crude ends 10-day rally on China woes, dollar

NEW YORK Jan 7 (Reuters) - U.S. crude futures ended lower for the first time in 11 trading sessions on Thursday on worries about China's demand growth and a stronger dollar, but frigid Northern Hemisphere weather helped limit losses.

China's central bank surprised markets by raising the interest rate on its three-month bills for the first time since August. Markets took the move as a sign the central bank could be getting ready to use more forceful measures to cool growth and fight inflation. [ID:nTOE60604H]

The U.S. dollar firmed against the euro and the yen, underpinned by weak German and euro zone data as well as by comments from Japan's new finance minister that he wanted the yen to weaken more. [USD/]

"The dollar being up helped pressure crude," said Rachel Ziemba, lead energy analyst at RGE Monitor, in New York.

"China's action was another one of the small steps they are taking to gradually remove excess liquidity and despite the recovery we're seeing, especially in emerging markets, oil markets are still oversupplied," she added.

Relatively subdued demand and other factors could push oil prices lower still, said Fiona Maharg-Bravo, a Reuters Breakingviews columnist. For details see [ID:nLDE6061N2]

On Wall Street, the Dow Jones Industrials Average .DJI and the Standard & Poor's 500 Index .SPX rose as Bank of America (BAC.N) and General Electric (GE.N) rallied on positive broker comments. A better-than-expected read on weekly jobless benefit claims also helped. [USD/]

The number of U.S. workers filing new applications for unemployment insurance rose less than expected last week, and the four-week moving average for new claims fell to a nearly 16-month low, government data showed. [ID:nN06156563]

Financial and commodties markets are awaiting Friday's jobs report for December. A new Reuters poll suggests that the economy stopped shedding jobs in December, after two years of uninterrupted cuts. [ID:nNYD0033441]

Temperatures should remain well below normal throughout much of the United States into the weekend, before moderating readings push eastward, according to private forecaster DTN Meteorlogix. [ID:nDTN869] [WEA]

Data from the U.S. Energy Information Administration on Wednesday showed crude stocks rose last week, against forecasts for a drop. Distillate stocks fell less than expected and gasoline stocks rose more than estimated. [EIA/S]

PRICES

* On the New York Mercantile Exchange, February crude CLG0 settled down 52 cents, or 0.63 percent, at $82.66 a barrel, trading from $82.26 to $83.36. Prices hit an intraday peak of $83.52 on Wednesday, the highest since October, 2008. In 10 days to Wednesday, front-month crude gained $10.71, or 14.8 percent

* In London, February Brent crude LCOG0 ended down 38cents, or 0.46 percent, at $81.51 a barrel, trading from $81.05 to $82.05. On Wednesday, Brent crude hit a high of $82.21, the highest since $85.07 intraday peak on Oct. 9, 2008.

* NYMEX February RBOB RBG0 settled down 0.17 cent, 0.08 percent, at $2.1349, trading from $2.1212 to $2.1455. Front-month RBOB was down for the first time in six sessions. In the previous five, RBOB rose 12.6 cents, or 6.3 percent.

* NYMEX February heating oil HOG0 ended down 1.96 cents, or 0.89 percentt, at $2.1836 a gallon, trading from $2.1779 to $2.2069, also down for first time in 11 sessions. In the previous 10, heating oil gained 25.8 cents, 13.3 percent.

* The February/February RBOB crack spread <0#RB-CL=R> ended at $7.01, up from $6.58 on Wednesday. The February/February heating oil crack spread <0#CL-HO=R> ended at $9.05, down from $9.35 on Wednesday.

* The spread between the current front month and the five-year forward crude contract CLc61 ended at $12.44 widening) from $12.25 on Wednesday. The February 2015 contract settled on Thursday at $94.90, down 53 cents, or 0.56 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $78.67/$75.69

For a full report on technicals, click on [ID:nLDE606180]

MARKET NEWS

* The gasoline-making unit at ConocoPhillips' (COP.N) in Belle Chasse, Louisiana, shut down on Monday, state regulators said on Thursday. [nN07191746]

* ConocoPhillips (COP.N) began three weeks of planned work on the fluid catalytic cracking unit at its Bayway refinery in Linden, New Jersey, sources said on Thursday. [ID:nN07180520] (Reporting by Gene Ramos and Robert Gibbons; Editing by David Gregorio)