* Prices approach top of 2010 trading range
* U.S. probably added jobs in March - survey
* Coming up: U.S. inventory report from API, 4:30 p.m. EDT
(Updates prices, recasts, adds detail, changes dateline
from LONDON)
By Edward McAllister
NEW YORK, March 30 (Reuters) - Oil edged higher above $82 a
barrel on Tuesday, extending a near 3 percent gain in the
previous session, as bright U.S. economic data spurred optimism
about recovery in the world's largest energy consumer.
U.S. consumer confidence rebounded in March while a closely
watched housing index showed home prices rose in January for
the eighth straight month. []
However, oil's gains were limited on Tuesday by strength in
the dollar, a survey showing OPEC crude output increased in
March, and concerns about global oil demand.
U.S. crude for May delivery <CLc1> rose 13 cents to $82.30
a barrel at 12:08 p.m. EDT (1608 GMT), while Brent crude
<LCOc1> rose 8 cents to $81.25 in London.
Prices have traded in a range between $69 and $84 this
quarter, touching $82.78 on Monday. Prices hit $83.95 a barrel
in January, the highest since October 2008 at the peak of the
financial crisis.
"Range-bound oil prices are a result of optimism about a
global economic recovery clashing with still weak oil market
fundamentals," JBC Energy analyst David Wech said.
A stronger dollar against the euro limited crude's gains on
Tuesday, as unease persisted about the euro zone's fiscal
health. []
A stronger dollar can denote a flight to safer havens from
assets deemed more risky such as equities and commodities,
helping to pressure crude prices.
U.S. non-farm payrolls probably increased in March, boosted
by temporary census hiring and a snapback from February's
weather-related losses, a Reuters survey showed ahead of
Friday's key 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.
"Recent trading ranges create expectations," said David
Moore, a strategist at the Commonwealth Bank of Australia in
Sydney. "The market is not especially tight and the
fundamentals that would underpin a sustained rise are not
really in place."
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 4:30 p.m. EDT
(2030 GMT) on Tuesday, while government statistics from the
Energy Information Administration (EIA) follow on Wednesday.
U.S. gasoline stocks are 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.
Oil stored at sea has dropped by 24 million barrels from
its peak in November 2009, Goldman Sachs said in a report on
Monday.
"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.
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.
[]
OPEC would increase oil production if oil prices stayed
"too high" for a long time, OPEC delegates said on Tuesday,
indicating prices above $85 a barrel may be considered damaging
to the world economy. []
OPEC members with production targets have reduced
compliance to just 50 percent in March with prices above $80 a
barrel, a Reuters survey showed on Tuesday.
(Additional reporting by Gene Ramos in New York, David
Sheppard in London, Alejandro Barbajosa in Singapore; Editing
by Lisa Shumaker)
(Reporting by Edward McAllister)
