* U.S. service sector gauge improves in May – industry
* All of the euro zone’s major economies in decline – PMI
* Coming up: API oil data 4:30 p.m. EDT Tuesday
By Robert Gibbons
NEW YORK, June 5 (Reuters) – Oil prices edged up on Tuesday,
but in see-saw trade after U.S. service sector data provided
lift and countered pressure from more weak euro zone data that
kept demand expectations curbed.
Growth in the U.S. services sector picked up slightly in May
as a gauge of new orders improved, according to an industry
report, moving up more than expected by analysts.
Investors and analysts said consolidation should be expected
after price drops early in the session did not threaten multi
month lows posted on Monday and with Brent crude having
retreated below $100 a barrel after reaching a 2012 peak above
$128 a bare in March.
“It has come off a long way, maybe now it’s time to
consolidate” said Tony Machacek, oil futures broker at Jefferies
Bache.
The dollar’s strength helped limit any oil price
gains along with news there would be no official statement
following a teleconference held by Group of Seven finance
ministers to discuss the euro zone debt crisis.
The euro fell after Spain’s Treasury minister said high
borrowing costs mean the country is effectively shut out of the
bond market and the European Union should help recapitalize
Spain’s debt-laden banks.
Brent July crude rose 15 cents to $99.00 a barrel by
10:30 a.m. EDT (1430 GMT), having fallen as low as $97.68,
staying well above Monday’s 16-month low of $95.63.
U.S. July crude was up 30 cents at $84.28, having
fallen only to $83.31, well above Monday’s $81.21 low.
EURO ZONE
Fanning concerns about global oil demand growth, euro zone
retail sales fell more than expected in April, sliding by the
biggest margin so far this year, the EU’s statistics office
Eurostat said on Tuesday.
And in another indication the euro zone is stumbling,
Tuesday’s purchasing managers indexes (PMIs) showed the bloc’s
vast private economy shrank in May at the fastest pace in nearly
three years, with company order books collapsing.
