RPT-UPDATE 9-Oil ends up as euro bounces, awaits inventory data

                                
 * U.S. crude stocks probably fell 2nd straight week-poll
                                
 * EIA trims oil demand growth projection
                                
 * Coming Up: EIA weekly oil data 10:30 a.m. EDT Wednesday
                                
 (Repeats to add Insider link)
                                
 (Recasts, updates with settlement prices, market activity)
                                
 By Robert Gibbons
                                
 NEW YORK, June 8 (Reuters) - U.S. crude oil futures rose on
Tuesday, lifted by a euro bounce ahead of ahead of inventory
data expected to show U.S. crude stocks fell last week.
                                
 Trading was choppy as worries over Europe's fiscal health
and the impact of austerity plans on economic growth weighed on
Europe's stock markets [.EU] and also had trading on Wall
Street seesawing after a higher open.  [.N].
                                
 "People are still touched by Friday's hefty losses and
wondering if the stock markets will back down or be back up,"
said Mark Waggoner, president at Excel Futures in Bend,
Oregon.
                                
 Front-month U.S. crude <CLc1> rose 55 cents, or 0.77
percent, to settle at $71.99 a barrel, trading from $70.75 to
$72.40 and staying inside Monday's trading range. ICE Brent
<LCOc1> rose 18 cents to settle at $72.30.
                                
 U.S. crude futures slumped 4 percent last Friday after the
May U.S. nonfarm payrolls report disappointed and sent oil and
equities markets tumbling.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
  Graphic showing performance of oil and other commodities:
                                
  http://link.reuters.com/hun72k)
                                
  Reuters Insider show on Crude Prices Likely to Linger Till
New U.S. Drilling Laws Set
                                
  http://link.reuters.com/suq88k
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 The euro <EUR=> rose on Tuesday after seesawing, recovering
against the dollar after slumping on Monday to its lowest level
versus the greenback since 2006. [USD/]
                                
 U.S. crude inventories were expected to have fallen for the
second straight week as import volumes declined, a Reuters
survey of analysts said on Tuesday ahead of weekly reports.
[EIA/S]
                                
 Industry group the American Petroleum Institute's inventory
report arrives at 4:30 p.m. EDT (2030 GMT) on Tuesday. The more
closely watched data from the U.S. Energy Information
Administration arrives Wednesday at 10:30 a.m. EDT (1430 GMT).
                                
 "The stock data will have a significant impact as it will
be the first to give indications of the driving season. The
shape of U.S. gasoline demand will be really important," said
Christophe Barret, an oil analyst at Credit Agricole.
                                
 MasterCard said U.S. retail gasoline demand dropped 5.8
percent in the week ending June 4 from the previous week, But,
over the past four weeks, gasoline demand was up 1.5 percent,
the report said. [ID:nNLL8HE65Z]
                                
 Oil fell below $65 on May 20 when the June crude contract
expired and though futures bounced back, with investors seeming
happy to buy into dips, the recent $70-$75 price range remains
well below the $87.15 19-month high reached May 3.
                                
 $70-$75 RANGE
                                
 "Prices look fairly stable around $72. We've moved to a
price level between $70-$75 that seems to be acceptable by
everyone and by OPEC," Credit Agricole's Barret said.
                                
 Saudi Arabia's oil minister said in remarks published on
Monday that oil prices would stay in the "ideal realm" of $70
to $80 a barrel. [ID:nLDE6561R8]
                                
 The European debt crisis and a still struggling U.S.
employment market were expected to lead to oil demand growth
projection cuts from leading forecasters this week.
                                
 The U.S. EIA report released on Tuesday, the first of three
widely watched oil reports set for release this week, reduced
its global demand growth forecast by 70,000 barrels per day to
a 1.5 million bpd year-on-year boost in 2010. [ID:nWNA2956]
                                
 The EIA also cut its forecast for 2010 non-OPEC production
growth by 160,000 bpd to 500,000 bpd. [ID:nWNA2952]
                                
 The Organization of the Petroleum Exporting Countries
releases its oil outlook on Wednesday followed by the
International Energy Agency's forecast on Thursday.
                                
 The IEA, adviser to industrialized nations, is also likely
to cut its estimates of U.S. offshore oil production for 2015
by 100,000-300,000 bpd due to potentially tighter U.S.
regulation on deepwater drilling following BP PLc's <BP.L>
<BP.N>  massive spill in the Gulf of Mexico. [ID:nSGE65708H]
                                
 Britain said it would increase its inspection of North Sea
drilling rigs and monitoring of offshore practices in the light
of the spill, in a move likely to be among many regulatory
changes for global deepwater projects. [ID:nLDE65704R]  
 (Additional reporting by Gene Ramos in New York and Joe Brock
in London; Editing by Marguerita Choy)