* Dollar up versus euro on U.S. consumer, retail data
* IEA raises 2010 global oil demand forecast
* IEA says OPEC output up, now highest in a year
NEW YORK, Dec 11 (Reuters) - U.S. crude oil futures fell on
Friday, hitting a two-month low as the market slumped for the
eighth straight day as a stronger dollar spurred selling.
Lingering effects of Wednesday's government inventory
report showing distillate and gasoline stocks rose last week
continued to pressure heating oil and gasoline futures.
The ample inventories negated impact of colder-than-normal
temperatures that have hit a large part of the country.
The National Weather Service's six- to 10-day outlook
issued on Thursday called for below-normal readings in a little
more than the eastern third of the nation and above normal
readings in about the western third.
Earlier, crude futures rose on economic data showing
further improvement in China's economy, boosting demand for
oil, [ID:TOE5BA057] and after the International Energy Agency
raised its 2010 oil demand forecast.
"But the current strength in the U.S. dollar seems to be
offsetting, keeping a lid on oil prices thus far," said Tom
Bentz, analyst at BNP Paribas Commodity Futures Inc.
The dollar extended gains versus the euro to hit a
two-month high after upbeat U.S. consumer confidence and higher
retail sales spurred expectations the Federal Reserve may raise
interest rates sooner rather than later. [USD/]
"The dollar's strength is overwhelming other inputs. Energy
prices seemed to benefit the most from the dollar's weakness
all year, and now it's payback time," said John Kilduff,
partner at Round Earth Capital in New York.
Wall Street lost ground on the dollar's strength. [.N]
PRICES
* On the New York Mercantile Exchange at 11:40 a.m. EST
(1640 GMT), January crude CLF0 was down 68 cents, or 0.96
percent, at $69.86 a barrel, trading from $69.46, the lowest
since Oct. 8's $69.17, to $71.20.
* In London, January Brent crude LCOF0 fell 12 cents, or
1.17 percent, to $71.74 a barrel, trading from $71;02 to
$72.60.
* NYMEX January RBOB RBF0 was down 1.56 cents, or 0.85
percent, at $1.8195 a gallon, trading from $1.8124 to $1.8477.
* NYMEX January heating oil HOF0 was down 0.04 cent, or
0.2 percent, at $1.8988 a gallon, trading $1.8890 to $1.9196,
supported by a bout of colder weather.
* The January/January RBOB crack spread <0#RB-CL=R> was at
$6.59, after ending at $6.53 on Thursday. The January/January
heating oil crack spread <0#CL-HO=R> was at $9.96, after ending
at $9.38 on Thursday.
* The spread between the current front month and the
five-year forward crude contract CLc61 was at $19.82, based
on the January 2015 contract Thursday settlement at $89.68. The
spread ended Thursday at $19.14.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $74.30/$75.93
Technical support/resistance:
NYMEX crude: $70.00/$72.00
NYMEX heating oil: $1.90/$1.95
NYMEX RBOB: $1.82/$1.90
MARKET NEWS
* The IEA raised its 2010 oil demand growth forecast
compared with 2009 by 120,000 barrels per day. [ID:nGEE5BA0ZN]
* The IEA said OPEC oil output inched up in November, led
by a sharp rebound in Nigerian output, and OPEC production was
now at its highest level in a year. [ID:nGEE5BA0MB]
* U.S. import prices rose 1.7 percent in November, largest
gain since June, driven higher by fuel costs. [ID:nN11254413]
* U.S. consumer sentiment improved in early December on
signs of stabilization in the labor market and widespread
discounts to entice holiday shoppers, the Reuters/University of
Michigan Surveys of Consumers said. [ID:nN11258525]
* U.S. business inventories unexpectedly rose in October
for the first time in more than a year, according to a
government report on Friday. [ID:nN10239098]
(Reporting by Gene Ramos and Robert Gibbons; Editing by David
Gregorio)
