* U.S. retail sales gain shows some strength in economy
* Crude stocks in U.S. seen higher, gasoline likely down – poll
* Obama pushes for Syria talks, warns of huge challenges
* Coming Up: Euro zone industrial production; 0900 GMT
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By Manash Goswami
SINGAPORE, May 14 (Reuters) – Brent futures held steady near $103 a barrel on Tuesday, caught between hopes of a revival in demand growth after an unexpected jump in U.S. retail sales and concerns about a rise in stockpiles in the world’s largest oil consumer.
The retail sales figures added to recent data pointing to underlying strength in the world’s biggest economy, but investors remain nervous about demand from the United States and China amid already slowing consumption in Europe.
Brent crude gained 7 cents to $102.89 a barrel by 0359 GMT, after settling down $1.09 on Monday. U.S. oil gained 22 cents to $95.39, after ending 87 cents lower. Both contracts fell the most in nearly two weeks in the previous session.
“We are not 100 percent sure that the United States is on a path towards steady recovery because data is conflicting,” said Yusuke Seta, a commodity sales manager at Newedge Japan. “On top of that, China is not looking good and Europe is not looking good. All this is keeping prices in check.”
Seta expects Brent to swing between $102 and $105 a barrel over the next few days because of the pull and push, with U.S. oil hovering between $93 and $97 a barrel.
Oil has also slipped in recent sessions because of a stronger dollar. The dollar eased from a five-week high against a basket of major currencies on Tuesday as market players locked in profits ahead of a series of U.S. economic data. A firm dollar pressures oil as its strength makes commodities more expensive for holders of other currencies.
“Expectations that the U.S. economy is recovering are pushing up the dollar,” Seta said. “That in turn is weighing on oil and other commodities.”
U.S. commercial crude oil stockpiles were seen slightly higher last week after hitting record high inventories over the previous two weeks while gasoline inventories were seen lower, a preliminary Reuters poll of eight analysts showed.
The survey ahead of weekly inventory reports from the American Petroleum Institute (API) and from the U.S. Department of Energy’s Energy Information Administration (EIA), forecast that crude stocks would rise 200,000 barrels on average.
In the previous week, U.S. crude oil inventories jumped to a fresh record high as domestic production continued to climb, data from the EIA (EIA) showed.
Brent is expected to rise to $103.77 before dropping towards $101.35, while U.S. oil may revisit its May 10 high of $96.24 before resuming its downtrend towards $93.58, according to Reuters technical analyst Wang Tao. (Reporting by Manash Goswami; Editing by Richard Pullin)
Source: Reuters
