* Crude lacks momentum to break out of range
* Saudi Arabia expected to cut export prices
* UAE says market is well supplied
* Coming up: U.S. inventory report from API at 2130 GMT
(Releads with Brent gains, updates prices)
By Jo Winterbottom
LONDON, March 2 (Reuters) - Brent crude oil futures gained
over $1 to nudge $78 per barrel on Tuesday, hoisted by a
strengthening euro, but failed to maintain momentum or carry
U.S. prices with them as concerns remain over stocks and
earnings from refining.
Weekly inventory data from industry group the American
Petroleum Institute (API), due to be published at 2130 GMT on
Tuesday, followed by U.S. government statistics on Wednesday,
could provide some impetus.
London ICE Brent <LCOc1> for April delivery was up 78 cents
to $77.67 a barrel by 1355 GMT after touching a high of $77.94,
while U.S. crude for April delivery <CLc1> gained 62 cents to
$79.32 a barrel.
The euro rose to a new session high against the dollar on
anticipation that Greece would announce new austerity plans to
rein in its huge debt. []
Crude prices bounced on the currency move.
"It's just chopping around. It's rangebound ... it's been
trading between $70-85 since October and there are some good
reasons for that," said Mike Wittner, head of oil market
research at SG Commodities.
Lending support are expectations for a gradual global
recovery and consequent increase in oil demand combined with
anticipation that OPEC will rein in output if necessary, he
said, while capping any gains are high product stocks and weak
refining margins.
STOCKS AND SUPPLIES
U.S. crude inventories probably rose 1.3 million barrels
last week amid higher imports, a Reuters survey showed, while
gasoline stockpiles may have gained 400,000 barrels. []
The dollar also edged back against a basket of currencies to
show losses of 0.03 percent, from gains of over 0.4 percent
earlier. <.DXY>
OPEC meets next on March 17 and ministers are already
suggesting there will be no change to current output quotas.
[]
Crude oil markets continued to be well supplied, United Arab
Emirates Oil Minister Mohammed al-Hamli said on Tuesday.
He added that prices between $70-80 per barrel were
acceptable to producers. "Oil price stability has been achieved
despite weakness in the global economy and unfavourable market
conditions," he added.
Top oil exporter Saudi Arabia is likely to cut the price of
all types of crude heading to export because of competition from
Russia's export blend and falling profit margins for fuel oil
sales, traders said.
The market is still absorbing the impact since January of
Russia's ESPO blend crude into the Asia-Pacific market, where
Chinese, South Korean and Japanese refiners have bought the new
crude. The grade competes with Saudi Arabia's main export grade,
Arab Light. []
(Editing by William Hardy)
