* IEA slightly raises 2010 world oil demand forecast
* U.S. retail sales rise 0.3 pct in February
* U.S. consumer sentiment dips early March
(Removes references to 15-month high in paragraphs 1 and 5)
By Chris Baldwin
LONDON, March 12 (Reuters) - Oil hovered above $82 a barrel
on Friday, paring gains after reaching a two-month high earlier
in the session as data showed a drop in consumer confidence in
early March.
The front-month U.S. crude <CLc1> contract rose as high
$83.16 a barrel, the highest since $83.95 on Jan. 11. It was up
24 cents at $82.35 at 1556 GMT. Brent crude <LCOc1> rose 20
cents to $80.48.
U.S. consumer sentiment declined slightly in early March,
with Americans less positive about the job outlook, a survey
released on Friday showed.[]
"Oil is hovering at this level around $82, and it will be
interesting to see how it performs technically," said broker
Tony Machacek at Bache Commodities.
Bullish U.S. sales data for February supported prices
earlier in the session.
"Those are good numbers, and the markets are responding
positively to them. Everything had a bit of a spike up when they
came out," said David Morrison, market strategist at GFT Global.
"For crude oil, the longer we stay above $80, the more
comfortable we are with that as a price floor, and the more
likely we are to stay above that range."
The U.S. dollar fell to a near one-month low against the
euro on Friday on reports a policy dove was a leading candidate
for vice chair of the U.S. Federal Reserve. []
A weaker dollar usually supports oil prices as it makes
dollar-denominated commodities less expensive for holders of
other currencies.[]
IEA REPORT
The International Energy Agency (IEA) said on Friday world
oil demand this year will be slightly higher than previously
expected because of growth in developing countries.
[]
The agency lifted its absolute demand estimates for 2009 and
2010 by 70,000 barrels per day (bpd) from its estimate in
February. It now expects world demand to average 86.57 million
bpd this year.
"We revised up figures for both 2009 and 2010 on the basis
of strong non-OECD demand," David Fyfe, head of the oil industry
and markets division of the IEA, told Reuters.
By contrast, the 2010 OECD forecast was revised down,
largely due to expectations of lower first-quarter heating oil
demand in Europe and continued North American weakness, notably
in middle distillates, the IEA said.
Weinberg said this was a possible risk, as China in
particular has been a concern due to the country's recent
inflation data showing a 16-month high and arguments for policy
tightening and possible bank reserve increases. []
"Most markets are operating on the presumption of continued
Chinese growth, and should China disappoint, you had better not
be in the commodities markets," Weinberg said.
On a bullish note, White House economic adviser Larry
Summers said on Thursday the United States was "very close" to
the point where job growth can begin. []
Officials at the Organization of the Petroleum Exporting
Countries, which meets in Vienna on March 17 to discuss
production policy, have said they do not expect a change in
targets while prices are within their desired range.
[]
(Additional reporting by Alejandro Barbajosa in Singapore,
editing by Sue Thomas)
