* U.S. EIA lifts forecast for 2010 oil demand
* U.S. government oil stocks data delayed to Friday
* Bailout of Greek economy may boost oil -analyst
* Dollar strengthens after Bernanke comments
(Recasts, updates prices, market activity to settlement)
By Joshua Schneyer
NEW YORK, Feb 10 (Reuters) - Oil rose above $74 a barrel on
Wednesday after the U.S. Energy Information Administration
raised its forecast for crude demand and prices this year, a
sign it expected an economic recovery to gain steam.
Oil reversed earlier losses after the U.S. dollar pared
gains against other currencies and equities pared losses. A
firming dollar can make oil, priced in dollars, less attractive
to investors. [] []
U.S. crude futures <CLc1> settled 77 cents a barrel higher
at $74.52 a barrel, capping a three-day rise in which oil has
gained 4.7 percent. Prices had fallen earlier in the day,
dipping as low as $72.60 a barrel. ICE Brent crude futures
<LCOc1> settled up 41 cents to $72.56 a barrel.
The EIA on Wednesday forecast world oil demand to rise 1.2
million barrels per day in 2010 from a year earlier, raising
its forecast by 120,000 barrels a day from a previous one.
[] The agency also forecast that oil prices would
average $81 a barrel in the second half of the year, up 9
percent from current levels.
"A recovering economy and tighter supplies should help oil
prices, even though we haven't seen inventories coming off
yet," said Gene McGillian of Tradition Energy in Stamford,
Connecticut. "After a sell-off last week, oil prices are now
holding."
The EIA's demand forecast went counter to one earlier
Wednesday from the Organization of the Petroleum Exporting
Countries, which cut its 2010 demand estimate citing the slow
pace of world economic recovery. []
The dollar pared some gains against the euro after reports
suggested a European rescue plan for debt-laden Greece may be
in the works. [] []
A bailout of Greece could alleviate jitters about the
fiscal health of European economies, boosting demand for
riskier assets like oil, analysts said.
"News that major European economies have resolved to help
Greece and possibly other peripheral economies within the euro
zone is bullish for risk assets," said Brad Samples, an analyst
at Summit Energy in Louisville, Kentucky.
Oil prices came under pressure earlier Wednesday after the
American Petroleum Institute industry group on Tuesday reported
a large increase in U.S. crude inventories last week.
Crude stocks in the United States, the world's largest oil
consumer, increased by 7.2 million barrels to 337.6 million
barrels in the week to Feb. 5, API said.
The increase in crude inventories exceeded analysts'
expectations for a 1.5 million barrel rise. [] Official
stocks data from the U.S. Energy Information Administration
(EIA), usually released Wednesday, have been delayed to Friday
as U.S. government offices were closed due to a snow storm.
(Additional reporting by Ikuko Kao and Joe Brock in London,
Gene Ramos in New York and Jennifer Tan in Singapore; Editing
by David Gregorio)
