* U.S. economic data, China support
* Pressures from firm dollar, immediate weak demand
* U.S. weekly oil data eyed
(Recasts, changes dateline from SINGAPORE)
By Ikuko Kurahone
LONDON, Feb 2 (Reuters) - Oil rose above $75, gaining for
the second day on Tuesday, on prospects that demand will
increase due to strong economic data from China and the United
States, the world's top two energy consumers.
But price gains were capped due to a stronger dollar []
and because current fuel demand remains weak in many developed
countries.
U.S. crude oil futures <CLc1> were trading 77 cents higher
at $75.70 a barrel by 1000 GMT. ICE Brent <LCOc1> rose 77 cents
to $73.88.
"The market seems to be recovering, buoyed by more positive
economic data and the implications that has for demand,"
Christopher Bellew, a broker with Bache Commodities, said.
On Monday, strong manufacturing data from the United States
pushed up oil by more than $1.50. Prices fell over 8 percent in
January.
The Institute for Supply Management (ISM) index rose to its
highest since August 2004, a sign the world's top economy is
recovering from the deepest recession in decades, which could
boost oil demand. []
That followed a separate report from the government last
week that the U.S. economy expanded by 5.7 percent in the fourth
quarter, the quickest pace in more than six years.
China's oil imports rose to a record level in December, but
monetary tightening may curb demand.
The market focus will shift to two sets of weekly U.S. oil
statistics due out later on Tuesday from an industry group and
on Wednesday from the government.
Analysts in a Reuters poll expect the data to show falls in
crude and middle distillate inventories, including heating oil,
and an increase in gasoline stocks. []
But even though U.S. oil data is forecast to show weekly
drops, the absolute inventory volumes of refined products are
likely to remain much above year earlier levels.
Immediate fuel demand remains weak. Tony Hayward, the chief
executive of oil major BP <BP.L> told Reuters Television that
government policies in the developed world were eroding demand
at the rate of 1 percent per year. []
Just this week, oil refiners Japan's Cosmo Oil <5007.T> and
U.S. Sunco Inc <SUN.N> have separately said they would
permanently shut down a part of their refining capacity.
Russia maintained its oil output above 10 million barrels
per day in January, outpacing Saudi Arabia. []
(Additional reporting by Alejandro Barbajosa; editing by Sue
Thomas)
