* U.S. weekly oil data awaited
* Crude stocks seen slightly higher
* Wall Street rises for second straight day
(Updates prices)
By Rebekah Kebede
NEW YORK, Feb 2 (Reuters) - Oil prices rose more than 3
percent to nearly $77 a barrel on Tuesday, gaining for the
second session on optimism about economic recovery and weakness
in the dollar.
U.S. crude oil futures <CLc1> rose $2.54 to $76.97 a barrel
by 1:43 p.m. EST (1843 GMT). In London, ICE Brent crude <LCOc1>
rose $2.62 to $75.73 a barrel.
"The economic data has been pretty good and petroleum
markets got a cue to correct," Andrew Lebow, an analyst at MF
Global in New York, said.
Wall Street rose for the second day after positive earnings
reports from economic bellwether companies United Parcel
Service and Emerson Electric. []
The S&P 500 was up for a second straight day after falling
6.2 percent in the last three weeks of January.
The dollar index dipped by midday, supporting oil prices.
[]
Oil prices were also boosted by Monday's news that the
Institute for Supply Management's 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. []
Also supportive was news that China's appetite for foreign
oil will stay near record levels in coming months due to a
recovering economy and rising refining and stockpiling
capacity. []
Despite optimism for oil demand, inventories of oil and
refined products remain high.
The market was awaiting two sets of weekly U.S. oil
statistics, one due later on Tuesday from an industry group and
the other on Wednesday from the government.
Analysts in an updated Reuters poll expected the data to
show U.S. crude oil and gasoline inventories rose last week,
while distillate inventories, including heating oil, were
projected to have fallen. []
Analysts polled by Reuters also indicated that refinery
utilization rates would remain at 78.5 percent of capacity, the
lowest rate in about two decades, not counting hurricane
shutdowns. Sluggish fuel demand has forced refiners to cut back
on production and, in some cases, shut plants.
BP Plc <BP.L> reported a loss in its downstream sector on
Tuesday, with refining margins at a 15-year low due to weak
demand for fuels.
In an interview with Reuters Television, BP Chief Executive
Tony Hayward said margins would likely be pressured by surplus
refining capacity for some years to come. []
On Monday, top U.S. oil company Exxon Mobil Corp <XOM.N>
also reported losses due to dismal refining margins and Sunoco
Inc <SUN.N> will permanently shut down a part of its refining
capacity. []
(Additional reporting by Ikuko Kurahone in London, Alejandro
Barbajosa; Editing by Walter Bagley)
