July 30, 2010 – (Repeats to cut extrad word in fourth paragraph)
* Coming Up: U.S. 2nd-quarter GDP; 1230 GMT
By Alejandro Barbajosa
SINGAPORE, July 30 (Reuters) - Oil slipped on Friday, heading for a fourth consecutive weekly settlement within the $75-$80 range, as investors focused on a slowing economy and rising inventories in top consumer the United States.
U.S. September crude shed 22 cents to $78.14 a barrel at 0313 GMT, while ICE Brent fell 17 cents to $77.42.
Asian stock markets declined on Friday ahead of data expected to show U.S. economic growth slowed to 2.5 percent in the second quarter from 2.7 percent in the first.
"The market is going to be particularly sensitive to the GDP data because the U.S. economy still has big influence on oil demand," said Mark Pervan, a senior commodities analyst at ANZ in Melbourne.
U.S. crude prices on Thursday climbed almost 1.8 percent, the first gain of the week despite falling equity markets, boosted by a weaker dollar, which renders imports cheaper for developing economies. Reports showing soaring crude stockpiles in the U.S. had forced prices towards the bottom of the recent price earlier in the week.
"The correlation has been breaking down with equities, as the market is paying more attention to the supply data," Pervan said. "The market has been switching from demand indicators to the supply indicators as the DOE (U.S. Department of Energy) data bucked the trend on Wednesday and created a bit of indigestion."
U.S. crude inventories jumped the most in almost two years last week, by more than 7 million barrels, the DOE said in a weekly inventory report on Wednesday.
Oil has traded in a range between $70 and $80 for almost two months. Prices are unlikely to move above $80 a barrel unless inventories fall, Pervan said.
Japan's industrial output unexpectedly fell in June and manufacturers expect further declines in coming months, boding ill for the fragile economic recovery faced with a strong yen and moderating overseas demand.
Asian stocks sagged on Friday after U.S. technology companies issued glum outlooks, and after downbeat comments from a Federal Reserve official gave investors reason to book profits after a steady rally this month. (Editing by Ed Lane)
