* Robust U.S. manufacturing, home sales data buoy sentiment
* Fed seen keeping interest rates pat after two-day meeting
* Greece debt crisis seen capping oil's gains
* For a technical view of oil prices, see []
* Coming Up: April consumer data, API stocks report - Tues
By Jennifer Tan
SINGAPORE, April 26 (Reuters) - Oil was steady above $85 a
barrel on Monday, extending a near 2 percent gain on Friday, as
robust U.S. manufacturing and home sales data buoyed hopes of a
sustained economic rebound in the the world's top energy user.
Traders will await U.S. April consumer confidence data, due
on Tuesday, as well as the outcome of the Federal Reserve's
two-day policy-setting meeting starting on Tuesday, for more
trading cues.
Analysts widely expect the Fed to keep interest rates near
zero and stick to its pledge of low rates for an extended
period to foster the U.S. recovery.
By 0345 GMT, U.S. crude for June delivery <CLc1> was up 32
cents at $85.44 a barrel, after settling up $1.42 on Friday,
while London Brent crude <LCOc1> rose 32 cents to $87.57.
"For the time being, there's a little more optimism in the
market today, thanks to the good economic numbers that came out
of the U.S., and the fact that Europe has re-opened its
airspace and the ash cloud problem is settling down," said
Keiichi Sano, general manager of research for SCM Securities in
Tokyo.
Expectations that jet fuel demand would rebound, as
European flights resumed after the threat from an ash cloud fed
by a volcano in Iceland receded, also lifted sentiment.
European air traffic returned to normal after the end of
almost all restrictions related to the volcanic ash cloud,
European air traffic agency Eurocontrol said on Friday.
[]
Sano expects oil to trade in a range of $80-$87 a barrel
for the near term.
Oil has also been boosted by signs that the U.S. economic
recovery is slowly gaining momentum.
Sales of newly built U.S. single-family homes rebounded
strongly in March to touch their highest level in eight months,
as buyers rushed into the market to take advantage of a
homebuyer tax credit, a government report showed on Friday.
[]
New orders for durable U.S. manufactured goods, excluding
transportation, also posted the largest gain in over two years
in March. []
Analysts said Friday's robust data, coupled with other
reports this month showing firming domestic demand, indicated
the recovery in the world's largest economy, so far seen as
moderate, was starting to take on a stronger tone.
But oil's gains could be tempered by worries over the Greek
debt crisis.
"Greece is still a huge worry for investors -- people are
concerned the contagion will spread to Spain and Portugal and
affect the European Union's economy," Sano added.
One nagging question keeping investors on edge is whether
Greece's formal request for European Union and International
Monetary Fund aid will calm fears of default.
Until investors have a clear idea of exactly how much money
the country will receive from the European Union and the IMF --
and when -- the uncertainty stemming from its growing fiscal
woes will continue to weigh on global markets. []
Weekly U.S. oil inventory data due later this week will
also be closely watched.
The industry-funded American Petroleum Institute will
release its weekly inventory report on Tuesday at 2030 GMT,
followed by U.S. Energy Information Administration statistics
on Wednesday at 1430 GMT.
(Editing by Ed Lane)
