* 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
(Adds Brent milestone, graph on technical outlook)
By Jennifer Tan
SINGAPORE, April 26 (Reuters) - Oil rose on Monday, pushing
Brent crude to a fresh 18-month high, as robust manufacturing
and home sales data in the United States buoyed hopes of a
sustained economic rebound in the world's top energy user.
Traders awaited cues from 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 the same day.
Analysts widely expected the Fed to keep interest rates
near zero and stick to its pledge of low borrowing costs for an
extended period to foster the U.S. recovery.
U.S. crude for June delivery <CLc1> rose 16 cents to $85.28
a barrel by 0622 GMT, after settling up $1.42 on Friday.
The front-month contract for London ICE Brent crude <LCOc1>
rose 25 cents to $87.50, after having touched $87.65 earlier in
the day, the highest price since early October 2008.
For a graph of Brent's short-term oulook:
http://graphics.thomsonreuters.com/gfx/WT_20102604125539.jpg
"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 United States, and the fact that Europe has reopened 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 also lifted
sentiment, as European flights resumed after the threat from an
ash cloud fed by a volcano in Iceland receded.
European air traffic returned to normal after the end of
almost all curbs prompted by the volcanic ash cloud, European
air traffic agency Eurocontrol said on Friday. []
GROWTH MOMENTUM
Sano expects U.S. crude to trade in a range of $80-$87 a
barrel in the near term, as prices have 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.
(With additional reporting by Alejandro Barbajosa and Wang
Tao; Editing by Clarence Fernandez)
