* S&P stock index pares gains after strong start []
* U.S. existing home sales fall less than expected
* Dollar gains ahead of EU summit on Greek debt crisis
* Coming Up: U.S. weekly oil inventory data (4:30 pm EDT)
(Recasts, adds detail and changes dateline from LONDON.)
By Joshua Schneyer
NEW YORK, March 23 (Reuters) - Oil prices steadied below
$82 a barrel on Tuesday as a stronger dollar and lackluster
equities markets dragged commodity prices and offset
encouraging U.S. housing data that fed economic optimism.
Sales of existing U.S. homes fell less than forecast in
February, according to the National Association of Realtors in
figures that are closely watched for an indication of economic
activity in the world's biggest oil consumer. []
U.S. stock markets pared early gains, with the S&P 500
index up 0.07 percent in late-morning trade, as healthcare
companies and drugmakers retreated after rising on Monday
following the passage of U.S. healthcare legislation.
A firming U.S. dollar helped to hold down oil prices, as
concern over Greece's debt crisis has pushed down the euro.
Commodities often move inversely to the dollar as they are
priced in the U.S. currency on international markets, and a
stronger dollar can also denote a sell-off in riskier assets
like commodities and equities.
U.S. crude for May delivery <CLc1> was up 20 cents at
$81.80 a barrel by 11:53 a.m. EDT (1553 GMT). The April
delivery contract expired on Monday, settling up 57 cents at
$81.25.
London Brent crude for May <LCOc1> rose 18 cents to
$80.72.
"We are paralleling the swings in the dollar and the
broader financial markets," said Gene McGillian of Tradition
Energy in Connecticut.
"There's anemic demand for fuel, and we haven't yet seen
the (crude) inventory levels come down."
Oil prices have mostly traded in a range between $75 and
$84 a barrel so far this year and high global oil inventories
have prevented oil from rising more sharply even amid
indications that global economies are recovering from the worst
recession in decades, as fuel demand fails to recover at a
similar pace.
The American Petroleum Institute (API) was due to release
its weekly inventory report at 4:30 p.m. EDT (2030 GMT) and was
expected to say U.S. crude oil stocks rose 1.3 million barrels
last week, a preliminary Reuters poll showed. []
API data showing a stock build, followed by official stocks
data from the U.S. Energy Information Administration early
Wednesday, could put a lid on oil prices.
Oil prices have traded above $83 on four occasions this
month, but failed to hold the gains, partly due to fears of
oversupply of oil. World oil demand remains well below its
level in 2007, before record prices and recession slashed
consumption and global oil inventories are well above their
five-year average.
GREEK CRISIS
Uncertainty surrounding potential aid for debt-stricken
Greece has made investors more risk averse, pushing the euro
down against the dollar on Tuesday. []
Concerns the EU may not bail out Greece after a summit in
Brussels later this week have kept the euro close to a
three-week low against the dollar and fanned risk aversion,
supporting money flows out of commodities and into assets
perceived as safe-havens, such as the dollar.
(Additional reporting by Christopher Johnson in Singapore;
Editing by David Gregorio)
