* Weak euro weighs on crude oil
* OPEC, EIA raise demand growth forecast, support crude
* U.S. crude, gasoline, distillates stockpiles rose -poll
* Coming Up: U.S. API inventory report; 2030 GMT
(Recasts, updates throughout, changes byline, dateline from
previous LONDON)
By Robert Gibbons
NEW YORK, May 11 (Reuters) - Oil futures slipped on Tuesday
in volatile trading as traders remained cautious about the $1
trillion rescue package aimed at stabilizing the euro and
keeping Greece's debt problems from spreading.
Crude oil futures had bounced off lows intraday on stronger
refined products futures, higher demand growth forecasts by
OPEC and the U.S. government and data showing continued rising
demand in China.
Commodities and stock markets rallied on Monday on the
rescue package aimed at stabilizing the euro and keeping
Greece's debt problems from spreading.
The euro fell on Tuesday as concerns about the euro zone
overcame the initial euphoria that followed announcement of the
rescue package. []
Global stocks slumped on Tuesday [], but U.S.
stocks recovered in afternoon trading on a rally by technology
and biotech sectors. []
U.S. crude for delivery in June <CLc1> fell 27 cents to
$76.53 a barrel at 2:06 p.m. EDT (1806 GMT), having seesawed
between an early $75.36 low and a high of $77.68.
ICE Brent for June <LCOc1> crude held on to its gain and
was up 52 cents to $80.64.
"This market is still trying to find out where it belongs.
The dollar remains stubbornly resilient and the question is
will we see another burst of investor buying or is the focus
turning more to fundamentals," said Peter Beutel, analyst at
Cameron Hanover.
The Organization of the Petroleum Exporting Countries
raised its 2010 world oil demand growth forecast but said
non-OPEC supplies would rise more than previously expected,
while member compliance with production targets fell to 51
percent. []
The U.S. Energy Information Administration also raised its
2010 world oil demand growth forecast from its previous
estimate. [] The EIA also lifted its forecast for
non-OPEC crude oil production growth in 2010. []
China's apparent oil demand in grew by double digits for
the eighth consecutive month in April.
Implied oil demand, the total amount of crude processed and
net imports of refined fuel, jumped in April nearly 13 percent
from a year earlier, according to Reuters calculations based on
preliminary official data. []
"News that oil demand in China is continuing to rise is
keeping oil futures up. While people say China will tighten
policies, they continue to buy more oil, copper, steel and
that's positive for the oil market," said Mark Waggoner,
president at Excel Futures in Bend, Oregon.
China's inflation edged up to an 18-month high in April and
bank lending topped expectations, which may curb oil prices if
potential monetary tightening measures result in lower demand
for fuel. [] []
U.S. gasoline <RBc1> and heating oil <HOc1> futures rose
more than 1 percent on Tuesday, with traders citing support
from news of a refinery snag and as the U.S. summer driving
season approaches.
VOLATILITY
On Monday oil prices rose as much as $3.40, before settling
up $1.69 at $76.80. Intra-day volatility was expected to
continue in coming days as the full implications of the euro
zone rescue package are gauged.
Spot gold, often seen as a safe-haven, remained near record
highs, highlighting the doubts many investors have over the
rescue plan.
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For a graphic on oil, equities and gold, click here:
http://graphics.thomsonreuters.com/gfx/JBO_20101105091337.jpg
For a commodity performance graphic, click here:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
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Crude oil intraday on Tuesday disengaged from its recent
tight correlation to the dollar and equities markets.
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For a graphic on oil/S&P 500 index/dollar correlation,
click here:
http://graphics.thomsonreuters.com/gfx/JLeff_20101105114856.jpg^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
The oil market's focus will turn to weekly U.S. inventory
statistics to be published over the next two days.
U.S. crude inventories likely rose by 1.3 million barrels
last week on higher imports, a Reuters poll of analysts showed
on Tuesday. []
Supplies of distillates including heating oil and diesel
were expected to be up 1.3 million barrels, while gasoline
stocks rose 700,000 barrels, the poll showed.
The industry group American Petroleum Institute will
release its inventory report for the week to May 7 on Tuesday
at 4:30 p.m. EDT (2030 GMT). The U.S. Energy Information
Administration's weekly report is set to arrive on Wednesday
morning at 10:30 a.m. EDT (1430 GMT).
(Additional reporting by Gene Ramos in New York, Joe Brock in
London and Alejandro Barbajosa in Singapore; Editing by David
Gregorio)
