* IEA ups global oil demand growth for 2010, 2011 to slow
* U.S. crude inventories fell 2 mln barrels last week -poll
* Coming Up: American Petroleum Institute at 2030 GMT
* For a technical view, click: []
(Updates prices, adds details)
By David Sheppard
LONDON, July 13 (Reuters) - Oil rose by more than 2 percent
on Tuesday touching $77 a barrel as optimism about economic
recovery and rising demand offset a report showing the pace of
oil consumption growth will slow next year.
The International Energy Agency (IEA) increased its estimate
for worldwide oil demand growth in 2010 by 80,000 barrels per
day (bpd) to 1.77 million bpd, but said this growth would slow
by around 400,000 bpd next year. []
"The key element is the gradual scaling back of economic
stimulus programmes which we are assuming takes place over the
next 12-15 months," David Fyfe, head of the IEA's Oil Industry
and Markets Division, told Reuters Insider TV.
"That's taking a little of the post-recessionary froth out
of the market."
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Reuters Insider interview with IEA's David Fyfe:
http://link.reuters.com/wev96m
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World oil demand is expected to average a record 87.84
million bpd in 2011 but the need for crude from the Organization
of the Petroleum Exporting Countries is expected to rise by just
400,000 bpd next year to 29.2 million bpd, the IEA said, leaving
the producer group with plenty of spare capacity.
"In short, markets in 2011 may prove 'not too hot, not too
cold'," the IEA said in its first demand projection for next
year.
At 1048 GMT, U.S. crude for August delivery <CLc1> was up
$1.91 at $76.86 a barrel, having earlier fallen to $74.25.
Prices reversed after Asian trade to hit an intraday high of
$77.13.
Brent crude oil for August delivery <LCOc1> was up $2.01 at
$76.38 a barrel. The price for the August contract moved briefly
above September <LCOc2> on Tuesday as traders bet maintenance in
the North Sea would boost the price of Brent in the short-term.
RECOVERY
Rising European equity markets supported prices, with many
traders focused on companies' financial results as they try to
gauge the strength of the recovery and its eventual impact on
oil demand. []
Alcoa, the largest U.S. producer of aluminium -- one of the
most energy intensive industrial metals to make -- lifted its
outlook for global consumption of the metal and posted
surprisingly strong quarterly results, raising optimism others
will follow suit.
The U.S. results season officially started on Monday, with
the focus now on quarterly reports from JPMorgan <JPM.N> on
Thursday and General Electric <GE.N> on Friday.
Shares in energy company BP <BP.L> were up as much as 5.5
percent at one stage on Tuesday as it prepared to try sealing
off its runaway well in the Gulf of Mexico with a new cap.
[]
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For graphics on the U.S. deepwater drilling moratorium:
http://graphics.thomsonreuters.com/10/US_DRL0610.gif
http://graphics.thomsonreuters.com/10/US_OFSHRD0610.gif
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Prices were also supported by signs bulging inventories in
the world's largest energy consumer may have fallen last week.
U.S. crude stockpiles are predicted to have dropped by 2
million barrels in the week to July 9, a Reuters survey showed,
after tumbling 5 million barrels a week earlier because of
shutdowns and shipping disruptions related to Hurricane Alex.
[]
U.S. distillate inventories probably rose by 700,000
barrels, the survey showed, while gasoline stocks are expected
to have risen by about 300,000 barrels.
The industry group American Petroleum Institute will release
its weekly inventory report on Tuesday at 2030 GMT, followed by
government statistics from the Energy Information Administration
on Wednesday at 1430 GMT.
(Additional reporting by Alejandro Barbajosa; editing by Alison
Birrane)
