Oil eased today to hover above $77 a barrel, held down by a firmer dollar, but trade thinned ahead of the Thanksgiving holiday and weekly US data that could show crude stocks rising in the world's top oil user.
The dollar trimmed losses as Tokyo stocks failed to follow up a stronger day on Wall Street, prompting some investors to buy back the dollar, and as others closed dollar-short positions before the Thanksgiving holiday.
A weekly report, due later from the American Petroleum Institute (API), which is likely to paint a more bearish picture of US energy demand, could offer more trading cues in a holiday-thinned week.
With a slew of economic data due this week, including November consumer confidence and revised US third-quarter gross domestic product figures today, as well as the minutes of the Fed's last policy meeting, traders will be scouring the number for signs of improvement in the world's largest economy.
US crude for January delivery eased 30 cents to $77.26 a barrel, after settling up 9 cents at $77.56 yesterday. London Brent crude fell 14 cents to $77.32.
While oil is up about 74 perc ent this year, it is still down 47 per cent from its July 2008 high over $147 a barrel.
Oil markets have looked toward broad economic data this year for signs of a global recovery that could boost flagging fuel demand.
Later today the US Department of Commerce will unveil its revised estimate of third-quarter GDP growth. Economists forecast a 2.9 perc ent annualised pace of growth, compared with a 3.5 per cent rate in the first Q3 estimate.
A US consumer confidence reading for November will also be released by the Conference Board. Economists expect a reading of 47.7, steady versus October's level.
US stocks snapped a three-day losing streak yesterday as stronger-than-expected home sales data fueled optimism while a weaker dollar boosted commodity-linked stocks.
Investors have been buying into commodities in a bid to hedge against the dollar's weakness and to guard against concerns an ultra-easy monetary policy could lead to a jump in inflation as the world economy rebounds.
Prices were also supported by forecasts of a colder-than-expected US winter early next year and tension surrounding Iran's air defence war games on Sunday.
Reuters