* Dollar strengthens after Bernanke remarks

 * IEA raises global oil demand growth forecast

 NEW YORK, Oct 9 (Reuters) - U.S. crude oil futures slipped
back in seesaw trading on Friday as traders weighed a
rebounding dollar against a forecast for higher oil demand.

 Prices were up earlier on demand hopes after the
Paris-based International Energy Agency painted a brighter
outlook for oil consumption for the rest of this year and in
2010 and as the dollar was weaker then.

 "The oil market today is sort of trying to balance the
competing influences -- the dollar and the stock market. But at
the end of the day, it looks like the dollar's influence will
hold, after the greenback reacted to Bernanke's comments. It
looks like crude futures will remain pressured,
counterbalancing the IEA demand forecast," said Brad Samples,
analyst at Summit Energy in Louisville, Kentucky.

 The dollar rose broadly on Friday after Federal Reserve
Chairman Ben Bernanke said the U.S. central bank will be ready
to tighten monetary policy as an economic recovery takes hold.
[USD/]

 The IEA said in a monthly report that world oil demand will
recover at a faster pace than previously expected for the rest
of 2009 and in 2010 as the economy picks up. [ID:nL9515065]

 Pre-weekend trading was slow and could remain range-bound
for the rest of the session, analysts said.

 In the early going, crude futures were supported by recent
optimistic "economic sentiment" about recovery from recession,
said Gene McGillian, analyst at Tradition Energy in Stamford,
Connecticut.

 And news that crude oil and middle distillate stocks in 16
European countries were lower at the end of September may have
helped the early bounce for crude, said Tom Bentz, analyst at
BNP Paribas Commodity Futures Inc. [ID:nL9241285]

 U.S. stocks rose as investors snapped up technology shares
following upbeat broker comments on such bellwethers as Apple,
offsetting a drag from natural resource shares after the
dollar's rebound. [.N]

 PRICES

 * On the New York Mercantile Exchange, at 12:05 p.m. EDT
(1605 GMT), November crude CLX9 was down 59 cents, or 0.82
percent, at $71.10 a barrel, trading from $70.62 to $72.24.

 * In London, November Brent crude LCOX9 was down 50
cents, or 9.72 percent, at $69.27 a barrel, trading from $68.85
to $70.45.

 * NYMEX November RBOB RBX9 fell 2.09 cents, or 1.17
percent, to $1.7588 a gallon, trading from $1.7514 to $1.7927.

 * NYMEX November heating oil HOX9 dipped 0.88 cent, or
0.48 percent, to $1.8381 a gallon, trading from $1.8263 to
$1.8705.

 * The November/November RBOB crack spread <0#RB-CL=R> was
at $2.77, after ending at $3.06 on Thursday. The
November/November heating oil crack spread <0#CL-HO=R> was at
$6.10, after ending at $5.88 on Thursday.

 * The spread between the current front month and the
five-year forward crude contract CLc61 was at $14.61, based
on the November 2014 contract Thursday settlement at $85.71.
The spread ended Thursday at $14.02.

 TECHNICALS

 NYMEX crude 10-day/20-day moving average: $69.88/$69.89

 Technical support/resistance:

 NYMEX crude: $70.64/$72.59

 NYMEX heating oil: $1.8125/$1.8479

 NYMEX RBOB: $1.7594/$1.8171

 For a full report on technicals, click on [ID:nL9011956]

 MARKET NEWS

 * Top Chinese refineries will maintain their crude oil
processing in October at the record levels seen in September
despite a fuel price cut. [ID:nPEK143009]

 * The U.S. trade gap narrowed unexpectedly in August, a
U.S. Commerce Department report said. [ID:nN0948066]
 (Reporting by Gene Ramos and Robert Gibbons; Editing by
Marguerita Choy)

www.reuters.com

Peak Oil  Marketing Jenny Goldstein  Oil Writer