* Oil up more than $1, rebounds from 5-month low
* Outlook uncertain on euro crisis, high U.S. stockpiles
* Coming up: U.S. API weekly crude, dist, gasoline stock
* For a technical view, click: []
(Updates prices)
By Judy Hua
SINGAPORE, May 18 (Reuters) - A weaker dollar and strong
China demand helped crude oil gain more than $1 to above $71 a
barrel on Tuesday after hitting a five-month low the previous
day on concerns about the health of the global economy.
In China, demand continues to grow while exports are
expanding, enabling top Asian oil refiner Sinopec Corp
<0386.HK> to boost refined fuel sales to a new high of 390,000
tonnes a day. []
Sinopec Corp also expects to raise its crude oil imports
from Brazil by 43 percent to 200,000 barrels per day next year
from 2010. []
Japanese manufacturers also turned optimistic for the first
time in two years in May, a Reuters poll showed, providing
further evidence of the economy's continuing recovery led by
Asian demand. []
The dollar <.DXY> fell 0.21 percent against a basket of
currencies in Asian trade on Tuesday while the euro edged lower
after a rebound from a four-year trough on Monday. []
But the trend remains uncertain because of persistent
investor jitters over the euro currency and swollen U.S. oil
inventories.
"The market has been very volatile. My thinking is that
obviously the dominant factor is still concern about the
international economic outlook," said David Moore, an analyst
at the Commonwealth Bank of Australia.
U.S. crude for June delivery <CLc1> rose $1.24 to $71.32 at
0722 GMT, after settling down $1.53 at a five-month low of
$70.08 a day earlier.
June crude has fallen 20.5 percent from its 19-month high
$87.15 hit on May 3, which could indicate that crude prices may
be in for a short-term bounce, technical analysts said.
London Brent crude <LCOc1> for July rose 71 cents to $75.80
a barrel.
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For a technical chart on crude prices, click:
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Stockpiles of crude at Cushing, Oklahoma, the delivery hub
for the U.S. contract's West Texas Intermediate benchmark
crude, have risen in the last eight weeks to a record high 37
million barrels, pushing front-month U.S. crude down relative
to later futures contracts <CL-1=R> and the other global crude
benchmark, Brent.
U.S. crude stockpiles likely rose last week as crude
imports rebounded and refinery utilisation held unchanged, a
preliminary Reuters poll of analysts showed on Monday. []
Ahead of weekly inventory data from industry group American
Petroleum Institute (API) on Tuesday and the U.S. government
Energy Information Administration (EIA) on Wednesday, crude
inventories rose 700,000 barrels on average last week.
That would extend a buildup that started in the last week
of January, and post the 15th increase in 16 weeks.
Distillate stocks were forecast at 1.0 million barrels
higher while gasoline stockpiles likely fell 1.1 million
barrels, the poll showed.
But Goldman Sachs said in a research note on Monday the
high stockpiles at Cushing may reverse.
"As we expect refinery runs to continue to increase, we
remain confident that the situation in Cushing should reverse
over the coming weeks," it said.
While Lawrence Eagles, JP Morgan's head of commodities
research, agreed that higher refinery runs, boosted by stronger
cracks, will reduce Cushing stocks soon. []
In Europe, the fallout from an active volcano continues to
disrupt some air operations.
Norwegian oil and gas producer Statoil <STL.OL> said
helicopter flight travel to and from offshore installations in
the North Sea had been disrupted due to ash spewing from an
Icelandic volcano. []
(Editing by Ed Lane)
