* Eyes on Ireland's expected bailout package
* Bernanke defends US bond-buying, to speak at 1015 GMT
* Oil may drop to $80.60/bbl -technicals []
* Coming up: NYMEX Dec crude contract expires on Friday
(Updates prices, quotes, changes to LONDON)
By Zaida Espana and Isabel Coles
LONDON, Nov 19 (Reuters) - Oil rose above $82 a barrel on
Friday on a stronger euro ahead of an expected bailout of
Ireland as well as on expectations China could lift interest
rates to curb inflation.
U.S. crude for December delivery <CLc1>, which expires after
Friday's settlement, rose 55 cents to $82.40 a barrel by 0955
GMT.
North Sea benchmark ICE Brent crude futures <LCOc1> led the
market higher to trade 89 cents up at $85.94 a barrel, having
earlier risen $1.10 to $86.15 a barrel on hopes debt-ridden
Ireland will obtain a bailout loan from the European Union and
the IMF to shore up its banks.
"The announcement of some type of financial assistance for
Ireland seems imminent," Gain Capital Forex.com senior
strategist Daniel Hwang said in a note. "A resolution before end
of week is likely to see risk sentiment improve and help keep
oil prices supported above the $80 per barrel level."
[]
Analysts said that further expected clarity about Ireland's
debt woes has spurred risk appetite among investors, which has
supported oil prices. The euro <EUR=> edged up versus the
dollar.
"There is a return of risk trades in the market, and oil is
benefitting," Commerzbank analyst Carsten Fritsch said. "Worries
about the (euro zone) debt crisis seem to be easing somewhat
today."
VTB Capital oil analyst Andrey Krychenkov said that while
risk aversion has receded, investors remain concerned about
Spain and Portugal.
"Yesterday risk aversion receded, but in reality it doesn't
make things better. People are starting to get concerned about
Spain and Portugal," he said. "Really, it's still trading on the
back of a slight euro rebound."
EYES ON ECB CONFERENCE, CHINA
The market awaits comments from U.S. Federal Reserve
Chairman Ben Bernanke at 1015 GMT, ahead of a European Central
Bank conference.
In remarks prepared for the conference, Bernanke countered
criticism of the Fed's quantitative easing programme.
"The best way to continue to deliver the strong economic
fundamentals that underpin the value of the dollar, as well as
to support the global recovery, is through policies that lead to
a resumption of robust growth in a context of price stability in
the United States," Bernanke said. []
The ECB's president, Jean-Claude Trichet, will deliver a
keynote address at 1415 GMT.
Investors were also eyeing a potential Chinese interest rate
increase this weekend after a report in a Chinese newspaper
suggested that Friday could be a convenient time to raise rates
before banks settle accumulated interest on the 20th day of the
month. []
Oil could drop back to $80.06 per barrel as its rebound
could have fizzled, Reuters technical analyst Wang Tao said on
Friday. []
"Precious metals such as silver and palladium are climbing
and so are stocks, boosting market sentiment," said Shuji
Sugata, a manager at Mitsubishi Corp Futures. "There are slight
signs of risk-taking, but new position-taking is difficult
because volatility is high at the end of the week."
Prices received support earlier in the week from a 7.3
million barrel drawdown in crude stocks in government data
reported on Wednesday, the biggest weekly fall in 14 months.
[]
No major economic indicators are due on Friday.
(Additional reporting by Osamu Tsukimori in Tokyo; editing
by Jane Baird)
