* Prices approach top of 2010 trading range
* U.S. probably added jobs in March- survey
* Coming Up: U.S. inventory report from API, 2030 GMT
(Recasts with rising prices)
By Alejandro Barbajosa
SINGAPORE, March 30 (Reuters) - Oil rose towards $83 on
Tuesday as the dollar weakened, approaching the high for the
month of March on optimism about the global economic recovery.
U.S. crude for May delivery <CLc1> gained 44 cents to
$82.61 a barrel at 0722 GMT, while Ice Brent <LCOc1> rose 47
cents to $81.64 in London.
Prices have traded in a range between $69 and $84 this
quarter, touching $82.78 on Monday, the highest intra-day price
since March 18.
A falling dollar this week has boosted the purchasing power
for dollar-denominated commodities outside the U.S., reflecting
the usual inverse correlation between the U.S. currency and
oil.
"The one thing that might help the oil price this week is
what may well be seen as confirmation of the international
economic recovery," said David Moore, Commodity Strategist at
the Commonwealth Bank of Australia in Sydney.
U.S. nonfarm payrolls probably increased in March, boosted
by hiring for the decennial census and a snapback from
February's weather-related losses, a Reuters survey showed
ahead of Friday's report.
This would mark only the second time payrolls have
increased since the recession started in December 2007.
[]
But the proximity of oil prices to the top of this year's
trading range and rising U.S. crude inventories may offset
gains, Moore said.
"Recent trading ranges create expectations. When the price
gets close to the top, it falls back again. The market is not
especially tight and the fundamentals that would underpin a
sustained rise are not really in place," Moore said.
RISING STOCKPILES
U.S. crude inventories probably climbed by 2.6 million
barrels last week, posting their ninth consecutive weekly
increase, a Reuters poll showed on Monday. []
The American Petroleum Institute (API) will publish
stockpile data gathered from industry players at 2030 GMT on
Tuesday, while government statistics from the Energy
Information Administration (EIA) will follow on Wednesday.
U.S. gasoline stocks were projected to be down by 1.7
million barrels, with distillate stocks, which include heating
oil and diesel, down by 1.4 million barrels, the poll showed.
A drop in U.S. product inventories may accelerate in the
second half of the year, Moore said, setting the stage for
prices above $90 a barrel next year.
Oil in floating storage has dropped 24 million barrels from
its peak in November 2009, Goldman Sachs said in a report dated
March 29.
"We expect the supply-demand balance to continue to tighten
in 2010 as the global economic recovery continues to strengthen
demand, draw inventories and draw OPEC spare capacity back into
the market," Goldman analysts led by Jeffrey Currie said in the
report.
Oil producers and consumers gathered at the bi-annual
International Energy Forum (IEF) this week plan to call for
greater oil market stability and transparency as prices hold
near levels OPEC members laud as "perfect" for both groups.
"We're convinced, both producing nations and consuming
nations, that we need price stability. That's one of the
crucial points," Mexican Energy Minister Georgina Kessel told
Reuters on Monday, adding the IEF would produce a statement at
the end of the meeting, which starts on Tuesday and ends on
Wednesday. []
(Editing by Ed Lane)
