* Rallying global stocks lift sentiment
* European flights to resume after EU deal
* Coming Up: Goldman Sachs Q1 results; 1200 GMT
* Coming Up: API inventory report; 2030 GMT
By Alejandro Barbajosa and Emma Farge
SINGAPORE/LONDON, April 20 (Reuters) - Oil rose past $82 a
barrel on Tuesday as risk appetite improved ahead of Goldman
Sachs <GS.N> results and some European flights resumed after a
threat from spewing volcanic ash in Iceland receded.
U.S. government fraud accusations against Goldman Sachs have
soured market sentiment since Friday, but European equities and
U.S. stock futures edged higher, indicating investors are
instead focusing on the bank's corporate earnings due later.
The previous day, Citigroup <C.N> reported its best results
since 2007, which lifted global equities, feeding expectations
for future oil demand.
"It is up because of stronger equities and lower risk
aversion. Good numbers (from Goldman Sachs) would ease concerns
and further improve sentiment," said Carsten Fritsch,
commodities analyst at Commerzbank.
U.S. crude for May delivery <CLc1> rose by $1.10 to $82.55 a
barrel by 0953 GMT on the day of its expiry, after falling
nearly 5 percent in the previous two sessions.
The June contract rose 85 cents to $83.98 a barrel, while
ICE Brent crude for June <LCOc1> rose 98 cents to $85.25 a
barrel.
The European Union's deal to free up airspace closed after
the Icelandic volcano erupted last week also helped lift prices
ahead of an expected improvement in jet fuel demand, which has
fallen by about a fifth over the past few days. []
[]
Asked if the resumption of flights was bullish, Fritsch
said: "It is having at least a pyschological impact on the
market."
The dollar also fell against the euro on Tuesday, further
supporting oil by making it cheaper for buyers holding other
currencies. []
STOCK BUILD
But for some, lost jet fuel demand could add to already
brimming global distillate stocks both on land and in floating
storage.
"There are high stockpiles in the OECD countries and now we
are getting swollen kerosene levels. There's a supply glut,"
said Fritsch.
British air traffic controllers warned a new ash cloud was
headed for major air routes, prompting British Airways <BAY.L>
to cancel its short-haul flights. Britain's biggest airports
remained closed. []
Later on Tuesday, the American Petroleum Institute will
release its weekly inventory report, followed by the more
authoritative U.S. Energy Information Administration statistics
on Wednesday at 1430 GMT.
U.S. crude oil inventories probably rose by 200,000 barrels
last week due to higher imports, following a surprise dip the
week before, a Reuters poll of analysts ahead of weekly
inventory reports showed on Monday. []
Distillate stocks, which include diesel and jet, could have
risen by 800,000 barrels on average, while gasoline stocks may
have gained 500,000 barrels, the poll showed.
"If we have bearish statistics showing an increase in
inventories, we could see a return to the downtrend," said Tony
Nunan, a risk manager with Tokyo-based Mitsubishi Corp.
(Reporting by Emma Farge; Editing by Amanda Cooper)
