Oil falls after Trichet comments, Bernanke awaited

Brent oil fell on Thursday, pushed lower as European Central Bank President Jean-Claude Trichet highlighted downside risks to the economy, further clouding the demand outlook.

Investors were waiting for hints on any US action to shore up its economy following the ECB's decision to keep interest rates steady, as expected.

The ECB announcement has been interpreted as an indication a cycle of rates increases could be on hold as financial authorities strive to contain the euro-zone crisis. It had only a modest impact on the dollar, the currency of oil trade.

Brent crude fell 60 cents to USD 115.20 a barrel by 1251 GMT. Earlier it touched a session low of USD 114.74.

That compared with a peak on Wednesday of USD 116.50, Brent's highest since early August. It settled above its 100-day moving average, a technical indicator that had capped the market since August.

US crude slipped 60 cents to USD 89.74 a barrel.

"Oil prices are in the hands of macro financial developments interrupted by occasional local developments," said David Hufton, managing director of PVM Oil Associates in London.

"Ben Bernanke speaks this afternoon and President (Barack) Obama this evening and in the Gulf Coast tropical storms are rolling in thick and fast."

Obama is expected to lay out a plan to spur job creation, with implications for spending power and possibly for fuel demand in the world's largest oil consumer.

Anything Federal Reserve Chairman Bernanke says that could weaken or strengthen the dollar has implications for dollar-denominated commodities, which become more or less attractive for non-dollar investors.

Some analysts have also said this week's decision by the Swiss National Bank to cap its soaring currency could help to drive investors, fast running out of traditional safe havens, into oil.

For the latest on market fundamentals of supply and demand, the traders are looking to the US government's Energy Information Administration's latest snapshot of oil demand and inventory levels, a day later than usual because of Monday's Labor Day holiday in the United States.

A Reuters poll anticipated an increase in crude stocks following tropical storm disruption that shut in refinery capacity.

Three further storms -- Nate, Maria and Hurricane Katia -- could threaten Mexico's Bay of Campeche, Puerto Rico and the US East Coast.

Katia has weakened significantly in the last two days, but was still a hurricane with 80 mph (130 kph) winds, making it a Category 1 storm on the five-step Saffir-Simpson intensity scale.

Technical analysts, who examine previous price movements to predict future movements, saw limited potential for Brent to rise.

Gains could be limited to USD 116.83, said Reuters market analyst Wang Tao.