* Oil recovers from previous day's more than $2 fall
* Oil minister says demand for Saudi oil up, no OPEC cut
* Dollar at year low vs euro
* Awaits U.S. weekly oil data, Fed meeting, G20 summit
(Releads with Saudi Arabia, updates prices)
By Ikuko Kurahone
LONDON, Sept 22 (Reuters) - Oil rose above $71 a barrel on
Tuesday, supported by a weaker dollar and after the oil minister
of top exporter Saudi Arabia said he was seeing real evidence of
world economic recovery in the form of demand for Saudi crude.
U.S. crude futures <CLc1> rose $1.68 to $71.39 a barrel by
1500 GMT, trimming the previous day's $2.33 drop.
London Brent crude <LCOc1> gained $1.52 to $70.21.
Support came from a weak dollar and Saudi Arabia's comments,
which indicated healthy demand from Asia, including China, Mike
Wittner Societe Generale's global head of oil research, said.
"Most of the exports from Saudi Arabia and the Gulf
producers go to Asia. They are not guessing but they have
knowledge to say this," he said.
Saudi oil minister Ali al-Naimi said demand for Saudi crude
was increasing and OPEC would not cut output next year.
"The world economy seems to be recovering. I hope it will
recover fast and therefore it will impact demand," he told
Reuters in an interview. []
"If demand rises of course supply has to match it... Demand
for our oil is rising, and so we are -- at least I am --
convinced that economic growth is started and will continue."
China's apparent oil demand rose 2.9 percent in August from
a year earlier, the fifth consecutive rise. []
Still, Chinese domestic oil product demand has not kept up
with the refinery operation rates, prompting oil companies to
export fuels in large volumes. []
DOLLAR
The dollar fell against other currencies on Tuesday and hit
a one-year low against the euro. []
Its weakness makes dollar-denominated commodities cheaper
for investors holding currencies other than the dollar.
For much of this year, oil has been negatively correlated to
the dollar and has moved in tandem with stock markets, which
have recovered strongly from multi-year lows touched in March.
Many analysts are wary any economic recovery will be much
slower and more difficult than the equities markets are implying
and that fuel demand will continue to be depressed.
World stocks, measured by MSCI's global index
<.MIWD00000PUS>, rose by about 1 percent on Tuesday. The index
has risen by 26 percent so far this year.
Oil prices have more than doubled from their December low of
just above $32 a barrel and struck a 2009 high of $75 a barrel
in August, but since the start of September they have been
trapped in a narrow range between about $68 and $72.
Global investors will watch for clues on the health of the
global economy from a two-day U.S. Federal Reserve meeting
starting late on Tuesday and a summit of G20 nations later this
week. []
Oil traders will also look at two sets of weekly oil data
from the United States, the world's top energy consumer, for
guidance on fundamentals of supply and demand.
Analysts in a Reuters poll forecast the data would show
increases in U.S. domestic oil product inventories, including
gasoline, diesel and heating oil, because of slack demand.
The figures were also expected to show a drop in crude oil
inventories following lower imports. []
Industry group American Petroleum Institute will release its
weekly oil data at 2030 GMT on Tuesday and the U.S. Energy
Information Administration, a government unit, will publish its
report on Wednesday.
(Additional reporting by Fayen Wong in Perth; editing by James
Jukwey)
