* Dollar broadly weaker, supportive to oil
* US stocks up on BOJ, service sector data, lifting oil
* Coming up: EIA oil inventory data, 10:30 a.m. EDT Wed
(Updates with API inventory data, paragraphs 13-19)
By Robert Gibbons
NEW YORK, Oct 5 (Reuters) - Oil prices hit a five-month
peak near $83 a barrel on Tuesday, boosted by a slumping dollar
after a Bank of Japan rate cut and by tanker disruptions
because of a French strike and a closed Texan shipping route.
The BOJ pledged to pump more funds into the economy and
keep interest rates near zero [], pressuring the
dollar [] and boosting equities on expectations other
central banks will also act to stimulate their economies.
A weaker dollar can raise oil prices because it makes
dollar-denominated oil less expensive for consumers using other
currencies and lowers the value of dollars paid to producers.
U.S. crude for November <CLc1> delivery rose $1.35 or 1.66
percent to $82.82 per barrel, the highest settlement since
closing at $86.19 on May 3. The $82.99 intraday peak was the
highest since May 4's $86.24.
ICE Brent November crude <LCOc1> rose $1.56 to settle at
$84.84 a barrel.
"The complex continued its upward spiral into new
multi-week high territory again today with the assistance of
the strongest euro levels since last winter and an upside
acceleration in the stock market," Jim Ritterbusch, president
at Ritterbusch & Associates, said in a research note.
U.S. stocks ended sharply higher, with the S&P 500 index
closing at its highest level since mid-May on encouraging U.S.
services-sector data and with investors reassured by new steps
by Japan and Australia's central banks to fight economic
weakness. []
TANKER TRAFFIC JAMS
Shipping disruptions caused by striking French workers and
a downed power line on the Houston Ship Channel gave a lift to
crude oil and refined products prices.
Striking employees at France's top oil port were deadlocked
with management, with about 30 vessels carrying crude and oil
products blocked at Fos-Lavera near the Mediterranean port of
Marseille. []
The strike has trimmed fuel output at six French
refineries, boosting European benchmark gasoline barge prices
and helping U.S. gasoline <RBc1> and heating oil <HOc1> futures
close at their highest levels since August.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For graphic on refineries supplied from Fos-Lavera;
http://r.reuters.com/zar46p
For a FACTBOX on the Fos-Lavera oil hub:[]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
The shut portion of the Houston Ship Channel will not
reopen before Wednesday morning, the U.S. Coast Guard said.
Shut since Sunday, 11 inbound tankers were waiting to transit
the channel, it said. []
OIL INVENTORIES
Late on Tuesday, the American Petroleum Institute, an
industry group, reported that U.S. crude oil inventories rose
4.4 million barrels in the week to Oct. 1. []
But gasoline stocks fell 4.1 million barrels and distillate
stocks, including heating oil and diesel fuel, fell 777,000
barrels, the API said.
U.S. crude oil futures pared gains slightly in
post-settlement trading after the API report.
A Reuters survey of analysts ahead of weekly reports
forecast U.S. crude stocks rose 300,000 barrels in the week to
Oct. 1, with gasoline stocks little changed, down only 200,000
barrels. []
Supplies of distillates, including heating oil and diesel
fuel, were projected to have declined by 800,000 barrels.
Ahead of the inventory data, MasterCard delivered a mixed
picture for gasoline demand, reporting that it increased last
week from the previous week but fell year-on-year.
[]
The U.S. Energy Information Administration's weekly
inventory report will be released at 10:30 a.m. EDT (1430 GMT)
on Wednesday.
(Additional reporting by Gene Ramos in New York, Christopher
Johnson in London and Alejandro Barbajosa in Singapore; Editing
by David Gregorio)
