Oil below session highs, economic data positive

LONDON (Reuters) - Oil retreated from session highs below $58 a barrel on Friday, but stayed within sight of six month highs after positive data on the U.S. economy.

U.S. crude was up 58 cents to $57.29 a barrel by 1454 GMT (10:54 a.m. EDT). It touched a six-month high of $58.57 on Thursday. Brent crude was up 48 cents at $56.95.

"We believe that crude prices are being driven higher by a combination of rising expectations for a faster economic recovery, increased fund flows into commodities and higher utilization at U.S. refineries," said Adam Sieminski at Deutsche Bank in a research note.

The pace of job losses slowed in April in the United States, according to government data, providing further evidence to support the view that the economic climate might be improving.

Wall Street opened higher after the results of stress tests on U.S. banks showed no unexpected weaknesses.

Oil has gained more than 70 percent from a low of $33.55 in February, rallying with equity markets on hopes of economic recovery and also in response to oil supply cuts by the Organization of the Petroleum Exporting Countries.

Macro-economic data on major economies has begun to look less gloomy.

U.S. retailers on Thursday posted better-than-expected monthly sales results for a second straight month in April.

German exports posted their first rise in 6 months in March, according to the country's Federal Statistics Office on Friday.

"The risk for investors is that some markets have got ahead of themselves and could be vulnerable should the flow of positive economic data start to deteriorate," Barclays Capital said in a research note.

The bank noted that data on oil demand remains mixed and the market's inventory overhang is still huge.

"If the recent bout of positive sentiment subsides, prices might well go through a phase of consolidation in the mid-50s," it said.

The god smiles.

Obama to hold town hall meeting on credit cards

WASHINGTON, May 8 (Reuters) - U.S. President Barack Obama will hold a town hall meeting next week in New Mexico to promote congressional efforts to reform credit card practices, the White House said on Friday.

Banks such as Bank of America Corp (BAC.N)>, JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N) and Capital One Financial Corp (COF.N) face a new set of rules issued by the Federal Reserve last year aimed at reining in abusive credit card practices.

The rules are to be implemented by July 2010, a date some lawmakers and consumer groups complain is too far away to help struggling consumers.

U.S. lawmakers are trying to codify those rules in legislation and send it to Obama this month to sign into law. Legislative efforts are aimed at stopping credit card companies from imposing certain late fees, restricting retroactive rate increases, as well as other questionable billing practices and marketing to minors.

The Senate is expected to begin debating on Monday on legislation. The House of Representatives overwhelmingly approved its own legislation last month.

White House spokesman Robert Gibbs told reporters on Friday that Obama will focus on legislation and urge lawmakers to "get something done on an issue of tremendous importance to middle class families.

"For many people credit cards provide an opportunity to finance purchases," Gibbs said. "But we think there's a more equitable way to do that and I think that those reforms are on their way through Congress."

In 2007, Americans used an estimated 694.4 million credit cards with Visa Inc (V.N), MasterCard Inc (MA.N), American Express Co (AXP.N) and Discover Financial Services (DFS.N) logos, according to industry data.

The American Bankers Association trade group, which represents many of the biggest credit card issuers, have warned that legislation could reduce the amount of credit available and make it more expensive for card users going forward.

"We're in a difficult lending environment," Ken Clayton, the ABA's senior vice president for card policy, said during a conference call with reporters.

Are you in difficulty to borrow money since this year?