* Major stock indexes turn positive for 2010
* Saudi cuts most prices to Asia, Europe; US raised
* Iraq says OPEC unlikely to change output targets
* UAE says market is well supplied
* Coming up: U.S. inventory report from API at 1630 EST
(Recasts, updates prices at settlement)
By Edward McAllister
NEW YORK, March 2 (Reuters) - Oil rose nearly $1 to top $79
a barrel on Tuesday as signs of progress in securing European
financial backing for Greece lifted economic optimism.
The oil market awaited weekly U.S. inventory data from
industry group the American Petroleum Institute (API) due later
on Tuesday and from the U.S. government on Wednesday.
U.S. crude for April delivery <CLc1> rose 98 cents to
settle at $79.68 a barrel, off intraday highs that saw crude
trade up to $80.95 a barrel.
Prices have traded in a range between $69 and $84 a barrel
since last October, but $80 a barrel is being eyed as a key
resistance level, analysts said.
In London, ICE Brent <LCOc1> for April delivery rose $1.29
to settle at $78.18.
"Crude is going to remain volatile and subject to currency
influences as the crisis focus meanders between the euro zone
and the U.K. There is enough positive economic data out there
to keep prices near the $80 level," said John Kilduff, partner
at Round Earth Capital in New York.
The euro rebounded from a 9-1/2 month low against the
dollar on Tuesday as investors awaited new plans to address
Greece's debt crisis and held out hope for some type of help
from the European Union. []
Greece's borrowing costs fell to their lowest level in
weeks as its government is expected to announce new austerity
measures to win European debt guarantees for the cash-strapped
European Union member.
Oil prices have often risen over the past year when the
dollar weakens, making crude less costly for holders of other
currencies.
U.S. stocks headed for a third straight day of gains on
Tuesday as investors drew cheer from more mergers and
acquisitions and signs of progress in securing European
financial backing for Greece.
Tuesday's advance briefly pushed the Dow index into
positive territory for 2010, a day after both the S&P 500 and
Nasdaq indexes moved above the break-even mark for the year.
[]
Investors have looked to wider economic data over the past
year for signs of economic recovery and a potential rebound in
energy demand.
During a conference call, BP <BP.L> Chief Executive Tony
Hayward said that 1 million barrels per day (bpd) of refinery
capacity could be shut in Europe, the United States and Japan
this year.
STOCKS AND SUPPLIES
Analysts forecast data from the API due out later on
Tuesday and from the Energy Information Administration (EIA)
due out on Wednesday would show a 1.4 million-barrel increase
in crude stocks, a 900,000-barrel decline in distillates and a
600,000-barrel increase in gasoline. []
OPEC meets next on March 17 and ministers are already
suggesting there will be no change to current output quotas.
[]
"Despite the fact the global economy is gradually
recovering, demand has not increased significantly enough to
make us reconsider our production ceiling," Iraqi Oil Minister
Hussain al-Shahristani told Reuters. []
Crude oil markets remained well supplied, United Arab
Emirates Oil Minister Mohammed al-Hamli said. He said prices
between $70 to $80 per barrel were acceptable to producers.
Top world oil exporter Saudi Arabia cut the official
selling price of most of its crude grades in April to customers
in Asia and raised most prices to the United States, the state
oil company said on Tuesday. []
The Kingdom's oil production is still down compared with
2008, having fallen in 2009, state oil company Saudi Aramco's
chief executive was reported as saying on Tuesday.
[]
(Additional reporting by Robert Gibbons and Gene Ramos in New
York and Jo Winterbottom in London; Editing by Lisa Shumaker)
