* Saudi Arabia expected to cut export prices
* Iraq says OPEC unlikely to change output targets
* UAE says market is well supplied
* Coming up: U.S. inventory report from API at 2130 GMT
(updates prices)
By Jo Winterbottom
LONDON, March 2 (Reuters) - Oil hovered around $80 a barrel
on Tuesday, up around $1 and trying to maintain the gains
prompted by a stronger euro against the dollar as concerns over
stocks and earnings from refining sapped momentum.
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.
U.S. crude for April delivery <CLc1> rose $1.08 to $79.78 a
barrel by 1503 GMT, after touching a high of $79.88, while
London ICE Brent <LCOc1> for April delivery was up $1.21 to
$78.10 from a high of $78.24.
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. []
The dollar was up 0.17 percent against a basket of
currencies, from gains of over 0.4 percent earlier. <.DXY>
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.
BP <BP.L> Chief Executive Tony Hayward told a conference
call on its strategy 1 million barrels per day (bpd) of refinery
capacity could be shut in Europe, the United States and Japan
this year. []
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. []
OPEC meets next on March 17 and ministers are already
suggesting there will be no change to current output quotas.
[]
Iraqi Oil Minister Hussain al-Shahristani said he does not
expect OPEC to change its output target.
"Despite the fact the global economy is gradually
recovering, demand has not increased significantly enough to
make us reconsider our production ceiling," Shahristani told
Reuters. []
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 and Sue Thomas)
