* Goldman earnings beat forecasts, lift sentiment
* Some European flights resume
* Coming Up: API inventory report; 4.30 p.m. EDT
(Updates prices, adds details, Kuwait minister)
By Emma Farge
LONDON, April 20 (Reuters) - Oil rose past $83 a barrel on
Tuesday after stunning earnings by Goldman Sachs Group Inc
<GS.N> improved risk appetite and some European flights resumed
as the threat from Iceland's volcanic ash cloud receded.
Strong quarterly figures by the world's biggest commodity
trader overshadowed a move by British financial regulators to
follow U.S. authorities in pursuing civil fraud claims over its
marketing of a subprime mortgage product. []
Since last year, oil investors have been studying broader
financial markets like equities for signs of economic recovery
that would point the way toward 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 impact on the marke,"" said Carsten Fritsch, a
commodities analyst at Commerzbank.
U.S. crude for May delivery <CLc1> rose $1.73 to $83.16 per
barrel by 11:00 a.m. EDT (1500 GMT) on the day of its expiry, after
falling almost 5 percent during the last two sessions.
U.S. crude for delivery in June <CLM0> was also up about
1.5 percent at $84.40 per barrel. Brent crude for June <LCOc1>
rose 92 cents to $85.21.
Goldman unveiled its forecast-busting results four days
after the U.S. Securities and Exchange Commission accused Wall
Street's most powerful bank of fraud over the alleged duping of
clients with its marketing of a subprime mortgage product.
In London, Britain's Financial Services Authority said it
had also launched a formal investigation into Goldman Sachs
International in relation to the SEC allegations, and that it
would work closely with its U.S. counterpart. []
Goldman has denied the accusations, saying it was "very
disappointed" the SEC had brought the charges and insisting the
bank "would never mislead anyone."
A European Union deal to open airspace shut down after an
volcano in Iceland erupted last week also pushed prices higher
ahead of an expected improvement in jet fuel demand, which has
been slashed by about a fifth over the past few days.
[] []
The dollar also fell slightly on Tuesday, supporting oil by
making it cheaper for buyers holding other currencies. []
BRIMMING DISTILLATE STOCKS
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 Icelandic ash
cloud was heading for major air routes, prompting British
Airways <BAY.L> to cancel 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, after a surprise dip the week
before, a preliminary Reuters poll of analysts 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.
"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.
OPEC member Kuwait's oil minister said he saw oil trading
in a $75-$90 range for the foreseeable future. []
"This is ... materially lower than the $100 per barrel that
the same minister said a week ago would be required for OPEC to
raise output," JPMorgan Research said in a daily report.
The producer group has left supply targets unchanged since
late 2008, when it announced record cuts to halt a slide in oil
prices to near $32 a barrel.
(Reporting by Emma Farge and Alex Lawler in London, Diana Elias in
Kuwait and Alejandro Barbajosa in Singapore; Daniel Wallis in New
York; Editing by Marguerita Choy)
