* Prices buoyed by weaker dollar and signs of U.S. recovery
* Money managers increase net NYMEX crude longs-CFTC
* Coming up: U.S. employment trend index for Feb, 1500 GMT
(Updates prices, adds quote paras 8-9)
By Alex Lawler
LONDON, March 8 (Reuters) - Oil rallied to an eight-week
peak above $82 a barrel on Monday, near its highest this year,
buoyed by a weaker dollar and signs of an economic recovery in
top oil consumer the United States.
Currency movements could set the direction for prices as
demand strength may be unclear during the recovery, analysts
said.
"We very well could retest the 2010 highs of $83.95," MF
Global analyst Edward Meir said.
"However, our belief is that should we get there, a rather
substantial correction will set in, sending prices back into the
mid-to high $70 range, as some of the long money comes off the
table."
U.S. crude <CLc1> was up 59 cents at $82.09 a barrel by 1015
GMT, after touching $82.41, the highest since $83.95 on Jan. 11.
Brent crude <LCOc1> was up 65 cents at $80.54 after hitting
$80.92, also the highest since Jan. 11.
The dollar index <.DXY> was down 0.20 percent, making oil
cheaper for holders of other currencies. The euro gained, helped
by easing investor concern about Greece's debts.
French President Nicolas Sarkozy promised Greece on Sunday
that euro zone countries would help it overcome its financial
problems and vowed a crackdown on speculators who Athens blames
for its woes. []
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Some analysts do not see oil making a sustained upwards move
for the time being.
"We're seeing some recovery in risk appetite. The Greek
issues seem to be being sorted out, which is important," said
Mike Wittner, analyst at Societe Generale.
"The bottom line is we're nearing the top of the range we've
been in since October. We're still looking for rangebound
prices. "I'm not quite ready to get too bullish yet."
New York crude rose more than 1 percent on Friday, helped by
a government report that showed the United States lost fewer
jobs than expected in February. Speculators have also been
betting on rising prices.
Money managers extended their net long crude oil futures
positions on the New York Mercantile Exchange in the week to
March 2, the Commodity Futures Trading Commission said on
Friday. []
Oil was further supported on Monday from news that China
will build two strategic oil reserve bases -- a development
likely to underpin demand in the world's second-largest
consumer. []
With global demand expected to revive in 2010, the
Organization of the Petroleum Exporting Countries looks set to
keep its production target unchanged when it meets on March 17,
as it has for more than a year. []
Oil is slightly above the $70-$80 range that many in OPEC
have said they prefer.
(Additional reporting by Osamu Tsukimori in Tokyo; Editing by
Jon Boyle)
