* Stronger dollar weighs on oil prices
* U.S. crude inventories up 1.9 mln barrels last week
* OPEC meets in Vienna next week to decide oil production
* Coming up: API stocks data at 4:30 p.m. EST (2130 GMT)
(Recasts, updates throughout, changes dateline from LONDON)
By Rebekah Kebede
NEW YORK, March 9 (Reuters) - Oil prices slipped back from
eight-week highs on Tuesday, pressured by a stronger dollar and
uncertainty about an economic recovery.
U.S. crude futures <CLc1> for April fell 13 cents to $81.74
a barrel by 12:15 p.m. EST (1715 GMT), after reaching a low of
$80.16 a barrel earlier. In London, North Sea Brent crude oil
futures <LCOc1> slipped 24 cents to $80.23 a barrel.
"The petroleum markets have tipped back to the downside,
with crude oil testing the $80 level from above, on selling
prompted by an upturn in the U.S. dollar," said Tim Evans, an
energy analyst for Citi Futures Perspective.
The dollar, which for months has been inversely correlated
with oil prices, edged up on Tuesday against a basket of
currencies, putting some pressure on oil prices. []
A stronger dollar makes dollar-denominated commodities,
such as crude oil, more expensive for holders of other
currencies.
Expectations for a U.S. crude oil inventory build were also
bearish for prices.
A Reuters survey of analysts showed U.S. crude inventories
rising for a sixth straight week as imports edged up and
refinery utilization remained flat. []
Inventories of both crude oil and refined products in the
United States have swelled as the recession has reduced fuel
consumption in the world's top consumer of oil.
U.S. crude inventories gained 1.9 million barrels in the
week to March 5, the Reuters poll showed, while gasoline
stockpiles may have increased by 300,000 barrels.
The industry-funded American Petroleum Institute will
publish inventory data on Tuesday at 4:30 p.m. EST (2130 GMT),
followed by government statistics from the Energy Information
Administration on Wednesday at 10:30 a.m. EST (1530 GMT).
NO CHANGE TO OPEC TARGETS
The Organization of the Petroleum Exporting Countries will
keep oil production targets on hold when it meets in Vienna on
March 17, but could raise output later this year as the world
recovers from recession, pushing up demand for fuel, a Reuters
poll showed on Monday. []
OPEC ministers say they are content with oil prices where
they are and analysts say they are unlikely to do anything to
alter the current trading range between $70 and $85 per
barrel.
Iran's OPEC governor was quoted on Tuesday as saying the
12-country grouping may not necessarily increase output if oil
demand rises, as other producers might boost their production.
(Additional reporting by Robert Gibbons and Gene Ramos in New
York, Christopher Johnson in London, Alejandro Barbajosa in
Singapore; Editing by Walter Bagley)
