UPDATE 6-Oil inches down on strong dollar, inventories eyed

                                
 * A stronger dollar weighs on crude
                                
 * U.S. probably added jobs in March - survey
                                
 * Coming up: U.S. inventory report from API, 4:30 p.m. EDT
                                
 (Updates prices, adds detail, market activity, new quote)
                                
 By Edward McAllister
                                
 NEW YORK, March 30 (Reuters) - Oil slid below $82 a barrel
in see-saw trade on Tuesday, as a stronger dollar outweighed
brighter sentiment from some encouraging U.S. economic data.
                                
 The euro fell sharply against the dollar as investors took
profits after two days of gains and as unease persisted about
the euro zone's fiscal health. [USD/]
                                
 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.
                                
 Ahead of a holiday-shortened weekend, traders were also
positioning before weekly U.S. inventory reports roll in.
                                
 U.S. crude for May delivery <CLc1> fell 18 cents to $81.99
a barrel at 2:01 p.m. EDT (1801 GMT), after earlier hitting a
high of $82.74. Brent crude <LCOc1> fell 20 cents to $80.97 in
London.
                                
 "Crude futures are trying to hold above $82 and has not
generated any follow-through from yesterday's sharp jump. It
seems to be running into a wall of resistance near $83," said 
Gene McGillian, analyst at Tradition Energy in Stamford,
Connecticut, referring to Monday's 3-percent hike in prices.
                                
 "People are also awaiting inventory reports and if the
forecasts take hold, they will not be helpful for prices."
                                
 U.S. crude inventories probably climbed by 2.4 million
barrels last week, posting their ninth consecutive weekly
increase, a Reuters poll showed. [EIA/S]
                                
 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 1.5
million barrels, with distillate stocks, which include heating
oil and diesel, down by 1.6 million barrels, the poll showed.
                                
 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.
                                
 U.S. consumer confidence rebounded in March while a closely
watched housing index showed home prices rose in January for
the eighth straight month, which provided early support for
crude. [ID:nN30145876]
                                
 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 has offset
gains.
                                
 "The market is not especially tight and the fundamentals
that would underpin a sustained rise are not really in place,"
said David Moore, a strategist at the Commonwealth Bank of
Australia in Sydney.
                                
 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.
[ID:nN3082795]
                                
 OPEC would increase oil production if oil prices stayed
"too high" for a long time, OPEC delegates said, indicating
prices above $85 may be considered damaging to the world
economy. [ID:nN30144597]
                                
 OPEC members with production targets have reduced
compliance to just 50 percent in March with prices above $80 a
barrel, a Reuters survey showed. [ID:nLDE62T1V5]
 (Reporting by Edward McAllister; Additional reporting by Gene
Ramos in New York, David Sheppard in London, Alejandro
Barbajosa in Singapore; Editing by Lisa Shumaker)