* Oil supported by OPEC's failure to lift output targets * Dollar weakness helps support oil prices * Coming up: EIA natgas data at 10:30 a.m. EDT Thursday NEW YORK, June 9 (Reuters) - U.S. crude futures edged up on Thursday as OPEC's decision not to raise output targets at a meeting the day before and a big drop in inventories reported in the United States fueled concerns about supply. A weak dollar index .DXY, measuring the greenback against a basket of currencies also lent support to oil prices. In London, Brent crude LCOc1 seesawed near flat as the Brent premium to U.S. crude CL-LCO1=R narrowed after it hit a record above $18 a barrel earlier this week. OPEC talks in Vienna broke down on Wednesday when ministers were unable to reach a consensus on boosting production. U.S. crude stocks fell 4.85 million barrels, the largest weekly drop since December, on lower imports, according to the U.S. Energy Information Administration in a report released on Wednesday. Investors will be eyeing economic data from the U.S. on Thursday, including weekly jobless claims and trade data. FUNDAMENTALS * On the New York Mercantile Exchange, July crude CLN1 rose 60 cents to $101.34 a barrel by 8:15 a.m. EDT (1215 GMT), trading from $100.74 to $101.70. * Economics, rather than politics was behind the collapse of Wednesday's OPEC talks and the group as a whole would act if it grew worried about oil supplies running short, OPEC Secretary General Abdullah al-Badri told Reuters. * Libya's rebels said they hoped to restart oil production and gained pledges of over $500 million aid, as Western powers nudged them to plan for the day after Muammar Gaddafi's fall from power. [ID:nLDE7572HC] * OPEC's failure to agree to raise output will hurt Asian economies which already spend heavily on fuel subsidies, S Jaipal Reddy, oil minister of India, the world's fourth-largest oil importer, said. [ID:nL3E7H90PD] * Supporters of injured Yemeni President Ali Abdullah Saleh fired shots into the air to celebrate reports he would soon return to Yemen, which is torn by fighting between his backers and opponents. [ID:nLDE7580YA] MARKETS NEWS * The euro rose broadly as investors geared up for hawkish signals from the European Central Bank that would boost the single currency's yield differentials. But there was a risk of a correction in the euro if the ECB appeared dovish by flagging a slower pace of interest rate hikes later in the year, given a possible global slowdown and the Greek debt crisis. [USD/] * World shares were flat as investors awaited the European Central Bank meeting in which some expected a July rate rise. [MKTS/GLOB] * Copper was softer as traders fretted about further signs of U.S. economic weakness, but prices were buttressed by expectations of higher demand from China. [MET/L] * Gold held near $1,535 an ounce in Europe, little changed from the previous session, as traders hit the sidelines ahead of the European Central Bank meeting later in the day. [GOL/] UPCOMING DATA/EVENTS * U.S. trade balance for April. 8:30 a.m. EDT (1230 GMT) on Thursday. * U.S. weekly report on initial jobless claims released at 8:30 a.m. (1230 GMT) on Thursday. * U.S. Energy Information Administration natural gas storage data released at 10:30 a.m. EDT (1430 GMT) on Thursday. * U.S. Commodities Futures Trading Commission positions data released at 3:30 p.m. EDT (1930 GMT) on Friday. 8:15 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 101.34 0.60 0.6% 100.74 101.70 30,695 415,373 CLc2 101.85 0.56 0.6% 101.32 102.24 8,997 139,364 LCOc1 117.99 0.14 0.1% 117.37 118.53 66,028 252,407 RBc1 2.9793 0.0006 0.0% 2.9697 2.9980 1,216 60,470 RBc2 2.9653 -0.0001 0.0% 2.9553 2.9844 921 37,131 HOc1 3.0911 -0.0026 -0.1% 3.0752 3.1041 2,769 60,979 HOc2 3.1006 -0.0075 -0.2% 3.0894 3.1158 1,091 23,465 * NYMEX crude oil for July CLc1 rose 60 cents to $101.34 a barrel by 8:15 a.m. in volume of 30,695 lots. (Reporting by Robert Gibbons; Editing by John Picinich)

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