* Some European flights resume
* U.S. stocks edge higher on earnings
* Coming Up: API inventory report; 4.30 p.m. EDT
(Recasts, updates prices, changes dateline from previous
LONDON)
By Daniel Wallis
NEW YORK, April 20 (Reuters) - Oil rose past $83 a barrel
on Tuesday as the threat from Iceland's volcanic ash cloud
receded and allowed some European flights to resume, while U.S.
stocks edged higher on a wave of quarterly results.
Oil investors have been studying broader financial markets,
like company shares, since last year 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 impact on the marke,"" said Carsten Fritsch, a
commodities analyst at Commerzbank.
U.S. crude for May delivery <CLc1> rose $1.80 to $83.23 per
barrel by 11:50 a.m. EDT (1550 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
1.4 percent at $84.27 per barrel. Brent crude for June <LCOc1>
rose 92 cents to $85.15.
A European Union deal to open airspace, shut after an
volcano in Iceland erupted last week, also pushed up prices
ahead of an expected improvement in jet fuel demand, which has
been slashed by at least 1 million barrels per day (bpd), or
about a fifth of global consumption over the past few days.
[] []
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,"
added Fritsch.
The American Petroleum Institute is due to release its
weekly inventory report later on Tuesday, followed by the more
authoritative U.S. Energy Information Administration statistics
on Wednesday at 10:30 a.m. (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 Reuters poll of analysts showed on Monday. []
[]
Distillate stocks, which include diesel and jet fuel, 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.
The dollar slipped as global risk appetite improved after
robust first-quarter U.S. earnings led by Goldman Sachs and
expectations of rate increases in Australia and Canada. []
That supported the rising oil prices by making it cheaper for
buyers holding other currencies.
Goldman unveiled forecast-busting results four days after
the U.S. Securities and Exchange Commission (SEC) accused the
world's biggest commodity trader of duping clients with its
marketing of a subprime mortgage product. []
In London, Britain's Financial Services Authority said it
also launched an investigation into Goldman Sachs International
in relation to the SEC allegations. []
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.
OPEC has not changed supply targets since late 2008, when
it announced record cuts to halt a slide to near $32 a barrel.
(Additional reporting by Emma Farge and Alex Lawler in London,
Diana Elias in Kuwait and Alejandro Barbajosa in Singapore;
Editing by Marguerita Choy)
