* Global equities support, firmer dollar weighs
* U.S. crude to average $81.20 in Q2 2010-Reuters Poll
* Coming Up: April consumer data, API stocks report - Tues
(Adds U.S. equities, updates prices)
By Joe Brock
LONDON, April 26 (Reuters) - Oil hovered around $85 a barrel
on Monday, as support from steady global stock markets was
offset by the U.S. dollar's rise against the euro on the back of
lingering doubts over Greece's debt crisis.
European stock markets rallied on Monday, while U.S.
equities consolidated Friday's gains made on the back of strong
housing and manufacturing data. Expectations of a stronger
economy supports oil as traders anticipate higher demand.
U.S. crude for June delivery <CLc1> fell 2 cents to $85.10 a
barrel by 1337 GMT, after settling up $1.42 on Friday.
The front-month contract for London ICE Brent crude <LCOc1>
gained 12 cents to $87.37, having earlier risen to $87.75, the
highest price since early October 2008.
"Brent has briefly broken above resistance at $87.58 this
morning but so far has failed to remain above this level," said
Christopher Bellew, oil broker at Bache Commodities.
"The strength today seems to stem from stronger equities and
hope that the economic recovery in the US is gaining some
momentum."
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For a graph of Brent's short-term outlook:
http://graphics.thomsonreuters.com/gfx/WT_20102604125539.jpg
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The U.S. dollar <.DXY> firmed against a basket of currencies
and the euro on Monday, keeping pressure on oil prices. As the
dollar strengthens it makes commodities like oil more expensive
for buyers holding other currencies.
U.S crude oil is expected to average $81.06 a barrel in
2010, a Reuters poll showed on Monday, as analysts point to
growing demand in emerging economies, especially China, as prime
drivers. []
Uncertainty over proposals to curb speculation in energy
markets could add to oil price volatility this week.
Some of the biggest players in U.S. energy markets have told
the Commodity Futures Trading Commission (CFTC) that its plans
to reduce speculation is misguided and will drive investors to
overseas and unregulated markets. []
The position limit proposal stems from the spike in oil
futures prices to a record of more than $147 a barrel in 2008.
Robust economic data lifted U.S. equities on Friday,
boosting expectations of a sustained recovery in the world's
largest energy user.
Sales of newly built U.S. single-family homes rebounded 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. []
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 that showed improving domestic demand,
indicated the recovery in the world's largest economy, so far
seen as moderate, was starting to take on a stronger tone.
Traders awaited cues from U.S. April consumer confidence
data 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.
(Additional reporting by Jennifer Tan, Alejandro Barbajosa and
Wang Tao in Singapore)
(Reporting by Joe Brock; Editing by Amanda Cooper)
