NYMEX-Crude down, choppy near $60, on economic woes

* Wall Street pares gains, dollar stays down

* U.S. jobless claims lowest since Jan-gov't

NEW YORK, July 9 (Reuters) - U.S. crude oil futures were
down in choppy trading on Thursday afternoon as traders weighed
a drop in jobless benefit claims against worries over oil
demand amid high inventories and doubts about an economic
recovery.

Analysts suggested the overnight and early rebound after
six days of losses was technical, spurred by an oversold
condition.

"While the price plunge may have been a bit overcooked
short term, we are still viewing a resumption of the downtrend
to the $56-58 area as a high probability prior to the August
WTI contract expiry (on July 21)." said Jim Ritterbusch,
president of Ritterbusch & Associates in Galena, Illinois.

Earlier, crude futures rose above $61 a barrel, supported
by a drop in U.S. weekly jobless benefit claims and reassuring
early signs of second quarter corporate results.

On Wall Street, the Dow was down and the S&P and the Nasdaq
indexes pared gains following results of the latest U.S.
government bond auction. Uncertainties about second-quarter
corporate results dominated investor concerns. [.N]

Some analysts said oil markets were also keeping a wary eye
over policy initiatives being propounded by the Commodity
Futures Trading Commission, the U.S. regulator of futures
markets.

The Intercontinenal Exchange (ICE.N), the Atlanta-based
exchange operator, said Thursday it welcomes the chance to
present its views in hearings being scheduled by the CFTC on
its proposals. [ID:nN09443645]

NYMEX August crude futures settled on Wednesday at the
lowest level in seven weeks, hammered by large increases in
distillate inventories, which hit their highest level in 25
years, and gasoline stocks last week. [EIA/S]

Demand worries were also raised by the Organization of the
Petroleum Exporting Countries (OPEC) which said on Wednesday
that consumption of its crude would not return to 31 million
barrels per day -- the level it averaged in 2008 before the
economic crisis dampened oil use -- until 2013. [ID:nWLA8490]

PRICES

* On the New York Mercantile Exchange at 1:20 p.m. EDT
(1720 GMT), August crude CLQ9 was down 23 cents, or 0.38
percent, at $59.91 a barrel, trading from $59.25 to $61.62.

*The day's low was the cheapest since May 19, when
front-month crude futures hit $58.55.

* The June 30 peak of $73.38 was the highest intraday
front-month crude oil price since crude hit $75.69 on Oct. 21.

* In London, August Brent crude LCOQ9 was up 8 cents at
$60.51 a barrel, trading from $59.76 to $62.17.

* NYMEX August RBOB RBQ9 was up 1.25 cents, or 0.77
percent, at $1.6458 a gallon, trading from $1.6241 to $1.6791.

* NYMEX August heating oil HOQ9 was down 1.05 cents, or
0.68 percent, at $1.5274 a gallon, trading from $1.5109 to
$1.5689.

* The August/August RBOB crack spread <0#RB-CL=R> was at
$9.21, after ending at $8.46 on Wednesday. The August/August
heating oil crack spread <0#CL-HO=R> was at $4.24, after ending
at $4.45 on Wednesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $18.09 based on
Wednesday's settlement of the August 2014 contract at $78. The
spread on Wednesday ended at $17.86.

MARKET NEWS

* Initial claims for state unemployment insurance fell
52,000 to a much lower-than-expected seasonally adjusted
565,000 in the week ended July 4 from 617,000 the prior week,
the Labor Department said. It was the lowest reading since
January. For details, see [ID:nN08382700]

* The yen and the U.S. dollar fell as the U.S. jobless
claims revived appetite for risk. [USD/]

* OPEC seaborne oil exports, excluding Angola and Ecuador,
will fall 50,000 barrels per day to 22,80 million bpd in the
four weeks to July 25, said Roy May, an analyst at UK
consultancy Oil Movements, who who tracks future shipments.
[ID:nWLA8676]

* The U.S. Climate Prediction Center said that the
equatorial Pacific Ocean El Nino is developing and could
strengthen. While its effects could threaten the Asia-Pacific
region, it may also result in fewer storms sweeping in from the
Atlantic or the Gulf of Mexico. [ID:nN09340413]
(Reporting by Gene Ramos, Joshua Scheneyer, Rene Pastor;
Editing by David Gregorio)