* U.S. pending home sales rose to six-month high
* U.S. equities firm, analysts see $70-$75 range for oil
* Dollar firms to near four-year high against Euro
* Coming Up: U.S. API oil inventory report; 4:30 p.m. EDT
(Recasts, updates prices, market activity, new byline, changes
dateline, previously LONDON)
By Joshua Schneyer
NEW YORK, June 2(Reuters) - Oil prices firmed on Wednesday
after data showed pending U.S. home sales rose, improving
prospects for economic recovery and also boosting equities.
U.S. pending home sales rose more than expected, to a
six-month high in April, according to a monthly survey.
[] The index has risen in three consecutive
months, fueling optimism that an economic recovery in the
world's top economy is gaining steam.
U.S. crude for July <CLc1> rose 93 cents a barrel to $73.51
at 12:15 p.m. EDT (1615 GMT), after losing nearly 2 percent on
Tuesday.
Gains in NYMEX oil for delivery in later months were
steeper still, with the October contract up as much as $1.35 a
barrel.
Europe's ICE Brent <LCOc1> rose $1.43 a barrel to $74.14 a
barrel by the same time.
"The pending home sales helped the stock market and oil,"
said Richard Ilczyszyn, senior market strategist at
Lind-Waldock in Chicago.
Following the U.S. home sales data, oil and equities rose
in spite of lingering concerns that Europe's debt crisis may
cut into fuel demand and reports on Tuesday that showed
manufacturing growth fell across the globe in May.
[] []
Investors showed appetite for riskier assets and analysts
said crude prices were taking direction from a rise in stock
markets, which mostly fell on Tuesday.
"Equities are recovering some of their losses. It will be
very important to see what equities are doing as they have been
an indicator for the level of risk aversion in the market,"
said Commerzbank analyst Eugen Weinberg.
Concerns about a reduction in future offshore oil output
following the BP oil spill in the Gulf of Mexico may also be
supporting prices, Weinberg said. []
Oil markets turned sour in May, when crude posted its
sharpest monthly fall since 2008, dropping 14 percent amid
concerns surrounding Europe's debt crisis.[]
The euro slid to a near four-year low against the dollar on
Wednesday, helping to stem any bigger rally for crude prices,
since a firming dollar makes oil more expensive for holders of
foreign currencies. <EUR=>
Graphics: http://link.reuters.com/hun72k
http://link.reuters.com/taz77k
NEW RANGE?
Some analysts said they expected oil prices to become less
volatile than they were last month, staying in the $70-$75 a
barrel range in the near term.
"We could have some stability. The current level takes into
account the fact that the recovery appears to be slowing but
also the fact that we are not going to have a double dip," said
analyst Christophe Barret at Credit Agricole CIB.
Technical chart analysts say oil prices could fall towards
the next key support cushion of $70 a a barrel.
[]
That is also the low point of the $70-$80 range that the
Organization of the Petroleum Exporting Countries (OPEC) deems
satisfactory for both producers and consumers.
Weekly U.S. oil stocks data is due later Wednesday.
Industry group, American Petroleum Institute will issue its
report at 4:30 p.m. EDT (2030 GMT) The more authoritative U.S.
Energy Information Administration data is delayed until 11 a.m.
EDT (1500 GMT) on Thursday because of a U.S. holiday on
Monday.
U.S. crude oil inventories are forecast to have fallen by
200,000 barrels last week and gasoline stocks are expected to
fall by 500,000 barrels. []
(Additional reporting by Robert Gibbons in New York, Emma
Farge in London and Alejandro Barbajosa in Singapore, Editing
by Sofina Mirza-Reid )
