UPDATE 8-Oil rises to post 8th straight monthly gain

                                
 * US May refined products contracts approaching expiration
                                
 * Dollar stays under pressure, helps support oil, gold
                                
 * Coming up: CFTC positions data at 3:30 p.m. EDT Friday
 (Recasts, updates with settlement prices)
                                
 By Robert Gibbons
                                
 NEW YORK, April 29 (Reuters) - Oil prices pushed higher on
Friday, posting an eighth straight month of gains as the weaker
dollar and turmoil in North Africa and the Middle East offset
concerns about fuel demand and slowing U.S. economic growth.
                                
 For U.S. crude, the streak of monthly gains was the longest
since the contract was introduced by the New York Mercantile
Exchange in 1983, according to Reuters data.
                                
 Expectation's the U.S. Federal Reserve will maintain a
loose monetary policy following this week's meeting has helped
to fuel oil's rise, weakening the dollar and pushing investors
into riskier assets such as commodities.
                                
 Refinery problems ahead of the U.S. summer driving season
have added further support to U.S. gasoline futures <RBc1>,
which 33-month highs on Friday, settling at $3.46 a gallon and
just 5 percent below all time record highs.
                                
 Brent crude for June <LCOc1> rose 87 cents to settle at
$125.89 a barrel, gaining 7.3 percent for the month, touching a
2011 high of $127.02 on April 11.
                                
 U.S. crude <CLc1> for June settled up $1.07 at $113.93 a
barrel after touching $114.18 earlier, the highest intraday
price since prices reached $130 on Sept. 22, 2008. U.S. crude
rose 6.8 percent for April.
                                
 Both U.S and Brent crude bounced from early dips after euro
zone data showed the inflation rate rose further above the
European Central Bank's target in April, helping push the
dollar index against a basket of major currencies <.DXY> to a
three-year low. [ID:nBRLTFE7E0]
                                
 Thursday's report that growth in the U.S. gross domestic
product slowed more than expected in the first quarter
reinforced the perception that the U.S. central bank will
continue with its loose monetary policy. [ID:nCAT005418]
                                
 "Yesterday's three-year lows in the dollar index following
the mid-week Fed statement strongly suggests a market dynamic
that is not yet ready to reverse," Jim Ritterbusch, president
at Ritterbusch & Associates in Galena, Illinois, said in a
note.
                                
 "Consequently, oil will continue to be valued as an asset
class or inflation hedge along with other commodities such as
the gold market."
                                
 Crude oil trading volumes remained tepid, dampened by a
holiday in the United Kingdom.
                                
 Volatility and uncertainty due to the pan-Arab protests and
Libya's conflict have tempered trading. The U.S. 30-day average
volume is down by nearly 130,000 lots compared with the 250-day
average, according to Reuters data.
                                
 AFRICA, MIDEAST TURMOIL
                                
 Libya's conflict spilled beyond its borders as forces loyal
to leader Muammar Gaddafi attacked the Tunisian town of Dehiba,
near the Libyan border. [ID:nLDE73S12B].
                                
 Morocco, which borders oil and gas producer and OPEC-member
Algeria, said a bomb that killed at least 14 people on Thursday
was a terrorist act. [ID:nLDE73S007]
                                
 In the Middle East, tensions escalated in Syria and tens of
thousands rallied across the country demanding political
freedoms. [ID:nLDE73S0WK]
                                
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 For a 24-hour technical outlook on Brent:
                                
 http://graphics.thomsonreuters.com/WT1/20112904083345.jpg
                                
 For a wrap on U.S. growth, inflation:     [ID:nCAT005418]
                                
 For stories on Libya & Middle East crisis: [ID:nTOPMEAST]
                                
 For a TAKE-A-LOOK on Middle East, N Africa:[ID:nLDE73H1UN]
                                
 For top stories on the global economy:    [ID:nTOPMACRO]
                                
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 EYEING HIGH PRICE
                                
 Oil's price rise could be tempered if evidence that high
prices are eroding demand starts to confirm forecasters' fears
that they are slowing consumption and the global economy.
                                
 U.S. consumer spending rose as households stretched to
cover the higher cost for food and gasoline as inflation posted
its biggest year-on-year rise in 10 months. [ID:nN29101956]
                                
 Separate reports showed U.S. Midwest factory activity and
that while U.S. consumer sentiment rose as a sharp increase in
gasoline prices was viewed as being temporary, consumers still
anticipated additional price increases.
                                
 Complaints about high prices were the most frequent since
2008 and half of all households said their finances had
worsened, according to the survey.
  (Additional reporting by Gene Ramos and Matthew Robinson in
New York and Dmitry Zhdannikov in London; Editing by David
Gregorio and Marguerita Choy)