* U.S. stock market <> <.SPX> up more than 1 pct
* U.S. EIA data due at 1430 GMT
* Reuters poll: global 2009 oil demand down -1.56 mln bpd
(Updates prices, detail)
By Christopher Johnson
LONDON, April 29 (Reuters) - Oil prices climbed above $50
per barrel on Wednesday, supported by rising stock markets and
expectations the U.S. economic slowdown may be less brutal than
initially thought.
Investors shrugged off worse-than-expected data showing the
U.S. economy contracted by 6.1 percent in the first quarter and
also a bearish industry report on Tuesday showing a large build
in U.S. crude stocks.
The gradual global spread of swine flu, with the first U.S.
death confirmed from the H1N1 strain, also failed to dent the
oil market. For more stories on swine flu, click on []
Traders instead looked ahead to data due from the U.S.
Energy Information Administration and to equities for direction.
By 1400 GMT, U.S. crude oil for June delivery <CLc1> was up
90 cents per barrel at $50.82, having hit a high of $51. Earlier
the contract lost as much 80 cents.
London Brent crude was up 80 cents at $50.79 a barrel.
"We have had a high correlation between stock markets and
oil over the last few weeks and when equities go up, so do oil
and other commodities," said Frank Schallenberger, head of
commodities research at Landesbank in Stuttgart.
"Oil market fundamentals are very, very weak but that
doesn't seem to be making much difference to the price and
sentiment is being driven by other markets."
Stock markets bounced on Wednesday, reversing some of the
previous session's losses. U.S. stocks rose more than 1 percent
with investors hoping macro-economic data would show the global
economic may not be as severe as initially thought. []
REUTERS DEMAND POLL
European shares were up by midday on Wednesday, recovering
losses made in the previous session on stronger-than-expected
earnings news.
Royal Dutch Shell <RDSa.L> gained 0.8 percent after
outperforming analysts' forecasts, although it reported sharply
lower first-quarter profits due to lower prices. []
Speaking after the results, Shell Chief Financial Officer
Peter Voser said oil prices were unlikely to rise significantly
in the next 12-18 months because of economic weakness.
"It will take time for the economy to recover, and hence the
oil and gas price will be affected by that," Voser said.
Reuters' poll of 11 analysts, banks and industry
groups forecast world oil demand would fall this year by much
more than previously expected, as growth stalls in emerging
powerhouses China and India and fuel consumption declines in the
developed world.
Estimates see oil growth re-emerging in 2010, but analysts
remain divided about how severe this year's demand contraction
will be, as the global economic outlook remains clouded.
Reuters' poll showed oil use declining by an average of 1.56
million barrels per day (bpd) in 2009 to 84.10 million bpd.
Oil price slipped earlier after data on Tuesday showing U.S.
crude stocks rose 4.6 million barrels in the week to April 24.
The data from the American Petroleum Institute were more than
double analysts' expectations for a 2.1 million-barrel increase.
[]
The API report came ahead of the more authoritative U.S.
Energy Information Administration, due at 1430 GMT. []
(Additional reporting by Fayen Wong in Perth; editing by James
Jukwey)
