* U.S. existing home sales hit 2-1/2-year high in Oct.
* China Oct implied crude demand up 10 pct on year
* Gold hits record high of $1,173.50 an ounce
(Updates gold high in bullet point)
NEW YORK, Nov 23 (Reuters) - Oil prices rose slightly on
Monday as strong U.S. housing data pressured the dollar and
lifted expectations an economic rebound will bolster fuel
demand.
Sales of existing U.S. homes rose in October at a
faster-than-expected pace to the highest in more than 2-1/2
years as buyers rushed to take advantage of a popular tax
credit, according to a survey by the National Association of
Realtors. []
Oil markets have looked toward broad economic data this
year for signs of an economic rebound that could boost flagging
fuel demand.
U.S. crude gained 9 cents to settle at $77.56 a barrel, as
concerns about weak demand and high inventories pushed crude
off earlier highs of $79.92 a barrel. London Brent crude
<LCOc1> rose 26 cents to settle at $77.46 a barrel.
Support also came as the positive economic data prompted
investors sell the U.S. dollar for risker plays in equities and
commodities []. U.S. stock markets traded up, with the S&P
500 on track to snap a three-day sell-off [].
Investors have been buying into commodities in a bid to
hedge against the dollar's weakness and to guard against
concerns ultra-easy monetary policy could lead to a jump in
inflation as the world's economy recovers. []
Gold <XAU=> soared to a fresh record high of $1,173.50 an
ounce on Monday, bringing this year's gains to around 33
percent, as the dollar slipped. []
The National Association for Business Economists, a group
of U.S. business economists, boosted their forecast for
economic growth over the next year, but said the jobless rate
will remain stubbornly high. []
Analysts said Iran's large-scale air defense war games on
Sunday were also supportive for oil prices, as the world's
fourth-largest crude exporter demonstrated its deterrence
capabilities in the face of pressure from the West over its
nuclear program. []
"The rising Iran tensions, alongside U.S. dollar weakness
and gold's record high levels, have helped buoy oil prices,"
said Michelle Kwek, an analyst at Informa Global Markets in
Singapore.
Data showed China's apparent oil demand in October rose
10.3 percent from a year earlier, the seventh rise in a row, as
refiners produced at record rates among more signs of a solid
recovery in the world's No. 2 oil consumer. []
High U.S. crude and refined product inventories, caused by
weak demand in the world's top consumer, helped pushed crude
off early Monday highs near $80 a barrel.
A Reuters survey of analysts forecast weekly U.S. inventory
data will show a 1.6 million barrel build in crude stocks for
the week to Nov. 20 as production rebounded from Gulf of Mexico
disruptions caused by Tropical Storm Ida. Product stocks were
also seen higher. []
The American Petroleum Institute releases its weekly report
on Tuesday at 4:30 p.m. EST (2130 GMT), while the U.S. Energy
Information Administration inventory report will be released at
1030 a.m. EST on Wednesday.
(Reporting by Matthew Robinson and Robert Gibbons in New York,
David Sheppard in London and Fayen Wong in Perth; Editing by
Marguerita Choy)
((matthew.robinson@thomsonreuters.com: +1 646 223 6052;
Reuters Messaging: matthew.robinson.reuters.com@reuters.net))
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