Oil fell a dollar to below $43 a barrel on Thursday on weak economic data from the United States and China, the world’s two largest oil consumers.

The focus will shift later in the session to weekly U.S. fuel stocks data, which is expected to show crude inventories rose for a fourth consecutive week, and higher gasoline inventories.

U.S. crude fell $1.10 to $42.45 at 1510 GMT. Earlier in the session prices rose as high as $45.10. London Brent was down 3 cents at $44.99.

Prices came under pressure from another round of gloomy economic data.

The number of U.S. workers filing new claims for jobless benefits rose by more than expected last week, while housing starts and permits fell to a record low in December, data showed.

China’s economy slowed sharply in the fourth quarter and Japan’s central bank on Thursday predicted two years of deflation as Asia’s largest economies buckle under the strain of the financial crisis.

U.S. crude oil stocks are expected to have risen by 1.4 million barrels and gasoline by 1.9 million barrels in weekly data due at 1600 GMT on Thursday.

Traders were looking for news of the oil storage levels at the Cushing, Oklahoma, delivery point for NYMEX crude, which have been a drag on the nearby contract for U.S. crude futures.

European equities also pared early gains to turn negative, pressuring crude prices, traders said. Microsoft earnings missed expectations, contributing to a weaker opening for U.S. stocks.

Investors have been watching moves in equity markets to try and gauge the resilience of the broader economy, as the global economic slowdown has curbed demand for fuel around the world.

LONDON, Jan 22 (Reuters)