* Oil rises off month-low
* Coming Up: API U.S. petroleum inventory report; 2030
* For a technical view, click: []
(Updates prices, details)
By David Sheppard
LONDON, Aug 17 (Reuters) - Oil snapped a five-day losing
streak to rebound to near $76 a barrel on Tuesday as firmer
equity markets and a weaker dollar outweighed concerns about the
pace of global economic recovery.
U.S. crude for September delivery <CLc1> rose 45 cents to
$75.69 a barrel by 1425 GMT, recovering from a one-month low of
$74.86 hit on Monday. Prices hit an intraday high of $76.33 on
Tuesday before easing slightly.
The new ICE Brent crude future contract for October delivery
<LCOc1> gained $1.12 to $76.75 a barrel. The September contract
expired at $74.85 on Monday.
From a three-month high of almost $83 a barrel at the
beginning of August, prices have declined sharply over the past
two weeks, shedding more than 9 percent on doubts about the pace
of global recovery and of rapidly rising U.S. fuel inventories.
U.S. demand for gasoline normally peaks in the driving season
from late May to early September as holidaymakers take to the
roads. But stockpiles this year have increased for most of that
period, bucking the normal trend.
"As you approach this time in the Northern Hemisphere, the
driving season is abating, so I don't see that the demand for
gasoline will be heavy," said Peter McGuire, managing director
at CWA Global Markets in Sydney.
Disappointing economic growth data from Japan and sluggish
manufacturing numbers in the United States weighed on prices in
the previous session, but markets were firm on Tuesday after
U.S. data showed producer prices rose in July for the first time
in four months, easing deflation fears. []
European equity markets were up slightly, but the
FTSEurofirst 300 <> was almost flat for the year as a
whole, with many analysts saying markets currently lack
direction []. Wall Street rose after bellwether retailers
Wal-Mart and Home Depot recorded better-than-expected profits,
even as Wal-Mart cautioned about the strength of the U.S.
consumer. []
Both Ireland and Spain attracted strong demand in debt
auctions on Tuesday, easing some tensions surrounding the
financial health of euro zone countries struggling with high
debt and low growth. []
"We are still trading very strong correlations on U.S.
crude, and we are readjusting in line with implied moves in
equity markets, volatility and the euro/dollar," Petromatrix
trading adviser Olivier Jakob said.
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Graphic on oil's correlations with stocks and the dollar:
http://link.reuters.com/wyq35n
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The dollar was down slightly against a basket of currencies
<.DXY>. A weaker dollar makes oil cheaper for holders of other
currencies.
BULGING INVENTORIES
Forecasts ahead of weekly U.S. petroleum inventory reports
are for gasoline stockpiles to have remained little changed last
week, when they stood close to an all-time high. []
The American Petroleum Institute will publish industry
statistics late on Tuesday, followed by government data from the
Energy Information Administration (EIA) on Wednesday.
Gasoline stockpiles were forecast to have declined by just
200,000 barrels last week, a Reuters survey showed, while
supplies of distillate fuel including diesel were expected to
have gained 1.3 million barrels.
Crude inventories probably fell 1.1 million barrels,
according to the poll.
(Additional reporting by Emma Farge in London and Alejandro
Barbajosa in Singapore; editing by Keiron Henderson)
