* Firm U.S. dollar dampens sentiment
* Caution reigns ahead of EU summit on Greek aid
* Coming Up: U.S. Feb home sales (1400 GMT)
* U.S. weekly oil inventory data (2030 GMT)
Updates with prices, dollar, equities)
By Jennifer Tan
SINGAPORE, March 23 (Reuters) - Oil was steady above $81 a
barrel on Tuesday, facing pressure from a firmer U.S. dollar
and caution ahead of a European Union summit to discuss
Greece's debt woes.
The American Petroleum Institute weekly oil inventory
report, due later in the day, will offer clues on the outlook
for demand in the world's top energy user, while existing
February home sales data could shed light on the health of the
world's largest economy.
"The market is in a holding pattern, waiting for fresh
leads. The biggest issue now is the EU summit later this week,
as there is a lot of uncertainty over how the EU will handle
the Greece situation," said Informa Global Markets analyst
Michelle Kwek in Singapore.
"That is a big risk factor affecting dollar sentiment and
by extension, oil as well," said Kwek, adding that oil was
likely to trade in a range of $78-$82 a barrel this week.
U.S. crude for May delivery <CLc1> eased 22 cents to $81.38
a barrel by 0615 GMT, after settling at $81.60 a barrel on
Monday. The April delivery contract expired on Monday, settling
up 57 cents at $81.25 a day earlier.
London Brent crude for May <LCOc1> fell 22 cents to $80.32.
A Reuters poll of 10 oil-tracking analysts and
organisations showed the oil market will likely faces
oversupply of 150,000 barrels per day (bpd). []
This month, oil has managed to top $83 four times, but has
failed to hold the gains, partly stemming from rising risk
aversion due to nagging worries over Greece's debt woes and
expectations of oversupply this year.
EU leaders will discuss the issue of a financial aid
package for debt-stricken Greece at a summit in Brussels on
March 25-26, after Athens said it could not deliver promised
deficit cuts if its borrowing costs remained so high, and that
it may have to seek help from the International Monetary Fund.
But Germany and its European Union partners clashed on
Monday over financial support for Greece, with Chancellor
Angela Merkel, who faces fierce domestic opposition to any
bailout, continuing to rebuff calls for a euro zone agreement
this week. []
The euro held its ground on Tuesday after rebounding from a
three-week low against the dollar, helped by an improvement in
risk appetite following gains in U.S. stocks, but still stymied
by squabbling over Greece. []
The dollar index <.DXY>, a measure of its performance
against six other currencies, edged 0.13 percent higher to
80.754 at 0615 GMT, but was still well below an eight-month
high of 81.342 set in February.
Asian shares rose on Tuesday and edged back towards a
two-month peak hit last week, supported by investor
expectations of an ongoing recovery in the world economy, and
as tech stocks drew support from gains in U.S. peers.
[]
At 2030 GMT, the American Petroleum Institute (API) will
unveil its weekly inventory report. U.S. crude oil stocks
probably rose 1.3 million barrels last week, a preliminary
Reuters poll showed. Distillate stocks were seen easing 1.1
million barrels, while gasoline stocks were projected to fall
1.6 million barrels. []
At 1400 GMT, the National Association of Realtors will
release existing U.S. home sales for February. Economists
forecast a total of 5.00 million annualised units versus 5.05
million annualised units in January.
(Editing by Ed Lane)
