* Rallying global stocks lift sentiment
* European flights to resume after EU deal
* Coming Up: API inventory report; 2030 GMT
(Changes dateline, adds Goldman results, updates prices)
By Emma Farge
LONDON, April 20 (Reuters) - Oil rose past $82 a barrel on
Tuesday as risk appetite improved after a surge in Goldman Sachs
<GS.N> earnings boosted equities and as some European flights
resumed after a threat from volcanic ash in Iceland receded.
U.S. government fraud accusations against Goldman Sachs made
last week have crimped risk appetite across financial markets
but the bank's earnings announced on Tuesday beat expectations
and boosted equity market sentiment. []
Since last year investors in oil have looked to broader
financial markets, such as equities, for signs of economic
recovery that would point the way to higher fuel consumption.
"It is up because of stronger equities and lower risk
aversion. The start of European flights is at least having a
psychological impoact on the market," said Carsten Fritsch,
commodities analyst at Commerzbank.
U.S. crude for May delivery <CLc1> rose by $1.02 to $82.47 a
barrel by 1146 GMT on the day of its expiry, after falling
nearly 5 percent in the previous two sessions.
The June contract rose 80 cents to $83.93 a barrel, while
ICE Brent crude for June <LCOc1> rose 88 cents to $85.11 a
barrel.
The European Union's deal to free up airspace closed after
a volcano in Iceland 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. []
[]
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 from
Iceland 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.
(Additional reporting by Alejandro Barbajosa in Singapore;
Editing by Keiron Henderson)
