UPDATE 12-Oil up 4th day as stimulus hopes support

* U.S. Q2 GDP rises 1.5 percent, slowing from Q1

* U.S. consumer sentiment falls to 2012 low in July

* Coming up: API oil data 4:30 p.m. EDT Tuesday

(Updates volume, adds refined products data, analyst comment
paragraphs 10-14)

By Robert Gibbons

NEW YORK, July 27 (Reuters) - Oil prices rose a fourth day
on Friday on hopes for more stimulus from the U.S. Federal
Reserve after data showed U.S. economic growth slowed in the
second quarter as expected.

Dollar-denominated crude futures saw choppy trading as the
euro and dollar also seesawed, buffeted by comments from
European leaders.

The euro hit a three-week high, lifted early after French
leader Francois Hollande and his German counterpart, Angela
Merkel, said they are determined to do all they can to safeguard
the single currency.

The euro hit the session high on a report that European
Central Bank President Mario Draghi would favor giving the
bailout fund a banking license and would meet with German's
Bundesbank President Jens Weidmann.

"Financial markets see a benign mix of gently rising risk
appetite as worries over an imminent euro zone disaster ease and
prospects for another U.S. stimulus increase," said Carsten
Fritsch, oil analyst at Commerzbank in Frankfurt.

Brent September crude rose $1.21 to settle at
$106.47 a barrel, posting a 36-cent loss for the week after four
straight weekly gains. The premium to October Brent LCO-1=R
stayed above $1 a barrel.

U.S. September crude gained 74 cents to settle at
$90.13 a barrel, ending with a 1.43 percent weekly loss after
gaining the previous two weeks.

But both contracts stayed on track to register healthy
monthly gains next week, after both Brent and U.S. crude
suffered double-digit tumbles in the second quarter.

Total Brent crude trading volume lagged the 30-day average
by 33 percent and U.S. turnover trailed its 30-day average by 28
percent, with less than an hour of post-settlement trading left.

U.S. RBOB gasoline futures jumped 7.40 cents and
heating oil rose 2.10 cents, ahead of front-month August
contract expirations on Tuesday.

"RBOB futures ... were supported by a Midwest refinery snag
and by the usual speculative short covering that often precedes
monthly contract expiration," Jim Ritterbusch, president at
Ritterbusch & Associates said in a note.

Money managers raised their net long U.S. crude futures and
options positions in the week to July 24, the U.S. Commodity
Futures Trading Commission (CFTC) said on Friday.

They boosted their net long RBOB gasoline positions, while
heating oil moved from net short to net long.

SHOW ME THE STIMULUS

The euro's volatile trajectory on Friday followed Thursday's
stock market and oil price rise after Draghi said the ECB was
ready to do whatever it takes within its mandate to preserve the
euro.

Oil prices held gains after the Thomson Reuters/University
of Michigan final reading showed U.S. consumer sentiment fell in
July to its lowest level of the year.

Sputtering U.S. growth has encouraged some economists and
market participants to expect that the Federal Reserve will act
to provide more economic stimulus, a move that would probably
weaken the dollar.

U.S. economic growth slowed as expected in the second
quarter, expanding at an annual rate of 1.5 percent, leaving
open the door for the Federal Reserve to decide additional
stimulus is needed.

"The 1.5 percent reading may make somewhat more difficult
for the Federal Reserve to embark on additional easing, but does
not preclude it in the least," said John Kilduff, partner at
Again Capital LLC in New York.

"The prospect for easing will be supportive for crude oil,
other commodities and equities," he added.

U.S. stocks advanced, with the S&P 500 reaching the highest
level since May 4, when equities fell sharply on disappointing
U.S. April jobs numbers.

The Thomson Reuters-Jefferies CRB index, a commodity
market bellwether, pushed up 0.72 percent.

MIDDLE EAST UNCERTAINTY PERSISTS

The violence and turmoil in Syria and tension between the
West and Iran over the disputed Iranian nuclear program continue
to fuel uncertainty in oil markets.

Syrian President Bashar al-Assad's forces renewed a ground
and aerial bombardment of Aleppo on Friday.

Iran has allocated billions of dollars to self-insure its
oil tankers, Tehran's latest effort to get oil to buyers through
the financing obstacles of Western sanctions.

In addition to an embargo on purchasing Iranian oil, the
European Union on July 1 imposed a ban on insurance for tankers
carrying Iranian oil.

(Additional reporting by Gene Ramos in New York, Christopher
Johnson in New York and Luke Pachymuthu in Singapore; Editing by
Marguerita Choy, David Gregorio Sofina Mirza-Reid)