* Equities rally to boost commodities risk appetite
* IEA's Tanaka says high prices are dampening demand
* Technicals show Brent crude to rise to $124
* Coming Up: U.S. March existing home sales 1400 GMT
EIA oil data; 1430 GMT
(Updates throughout, adds quote, previously SINGAPORE)
By Zaida Espana
LONDON, April 20 (Reuters) - Brent crude rose above $122 a
barrel on Wednesday, helped by a rebound in equities and a
weaker dollar.
ICE Brent crude <LCOc1> gained $1.62 to $122.95 a barrel by
0853 GMT. U.S. crude <CLc1> was up $1.43 at $109.71 a barrel.
"There are external factors -- the strong equities and
weaker dollar -- which are not oil-related but answer for
today's gains," Commerzbank analyst Carsten Fritsch said.
European shares rose as upbeat earnings from companies
including chipmaker Intel boosted appetite for riskier assets on
Wednesday, driving the Australian dollar to a 29-year high
versus the dollar. [] []
The rally in equities also boosted risk appetite, lending
support to commodities.
Prices are likely to remain in a range in reduced trading
ahead of the Easter holiday weekend, analysts said.
"I think prices will remain in a narrow range between
$120-$123 a barrel and no breakout expected ahead of the Easter
weekend," Fritsch added.
The dollar index <.DXY>, which measures the greenback
against a basket of currencies, was down 0.45 percent. A weaker
dollar can lift oil prices by making dollar-denominated crude
less expensive for other currency holders.
Spot gold prices breached $1,500 for the first time, and
silver hit a 31-year high on Wednesday, also supported by the
weak dollar. []
The International Energy Agency's executive director, Nobuo
Tanaka, issued the latest in a series of warnings on the effect
of strong oil prices on demand. []
Producer group OPEC needs to boost output in June or July to
douse further price rises, Tanaka said, adding that if crude
prices stayed at $100 a barrel or more for the rest of 2011, the
market could see demand destruction to that of 2008.
OPEC has to date declined to make a coordinated increase in
supply, despite growing concerns about demand destruction as
world oil prices rocketed up to 2-1/2-year highs of $127 a
barrel earlier this month amid unrest in the Middle East and
North Africa.
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Technical outlook on Brent http://link.reuters.com/wuz98r
Technical outlook on WTI http://link.reuters.com/vuz98r
More on Middle East unrest: [][]
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U.S. OIL DATA
Data from the American Petroleum Institute on Tuesday showed
U.S. gasoline stocks fell 1.8 million barrels and distillate
stocks dropped 3.4 million barrels last week in an unexpected
decline, which helped ease fears over eroding demand. []
Analysts surveyed by Reuters forecast gasoline stocks would
fall 1.5 million barrels and distillate stocks would be
unchanged.
"The API numbers were rather bullish and set a good platform
for the oil data out of the U.S. tonight to boost prices," said
Lim.
The U.S. Energy Information Administration's weekly data is
due on Wednesday at 1430 GMT.
Tension persisted in the Middle East after Yemeni police
opened fire on protesters in Sanaa and Taiz on Tuesday, killing
at least three people, as protesters tried to step up their
campaign to end President Ali Abdullah Saleh's 32-year rule.
[]
In Syria, forces loyal to Muammar Gaddafi renewed the
bombardment of Misrata, causing several casualties, an Amnesty
International researcher in the besieged Libyan city said.
[]
(Additional reporting by Francis Kan in Singapore; editing
by Jane Baird)
