* OPEC raises 2010 demand outlook
* Dollar slumps to 14-month low
* Oil rises for fourth day on colder U.S. weather
(Updates throughout, adds analyst comment, previous
dateline LONDON)
By Joshua Schneyer
NEW YORK, Oct 13 (Reuters) - Crude oil rose to a seven-week
high near $74 a barrel on Tuesday after OPEC raised its 2010
demand forecast and the dollar weakened, boosting demand for
commodities.
The Organization of the Petroleum Exporting Countries
forecast a recovering world economy would boost world crude
demand by 700,000 barrels per day next year, to 84.93 million
bpd. []
OPEC, which pumps a third of world supplies, had previously
projected global oil demand would recover by just 500,000 bpd
next year.
"The world economy now appears to be entering into a new
phase, moving from a period of containing the crisis to one of
economic recovery," OPEC said in its monthly market report.
U.S. crude <CLc1> rose 43 cents to $73.70 by 12:28 p.m. EDT
(1628 GMT), having earlier hit a seven-week high of $74.47 a
barrel. Oil prices have surged by 65 percent this year.
London Brent crude <LCOc1> gained 60 cents to $71.96.
The U.S. dollar weakened to 14-month low against the euro
and a basket of currencies, which helped gold rally to a new
record high. [] Dollar-priced commodities such as oil and
gold tend to rise when the greenback falls as they become
cheaper for holders of other currencies.
Oil prices rose for a fourth day, but failed to break a
year-high of $75 a barrel, as investors remained concerned over
the pace of a U.S. economic rebound.
U.S. equities opened lower after consumer goods giant
Johnson & Johnson <JNJ.N> reported disappointing quarterly
sales figures, raising concerns about the pace of consumer
spending.
The S&P 500 index slid from positive to negative territory
in afternoon trade, after stocks gained in six previous
sessions. <.SPX>
With earnings due from a number of major U.S. firms this
week, the oil market is taking cues from Wall Street, as
investors gauge the strength of the nascent recovery.
"The weak dollar is a reason we're in positive territory
today," said Tim Evans, analyst at Citi Futures Perspective in
New York. "The crude oil market has also become obsessed with
the S&P (stock) index."
Cold weather in the United States also helped boost oil
prices, with the National Weather Service forecasting the first
seasonal wave of cold weather in the Northeast and Midwest
would boost demand for heating oil to 43 percent above normal
levels. []
U.S. weekly oil inventory data from the American Petroleum
Institute (API) will be delayed until Wednesday due to Monday's
Columbus Day holiday, while the Energy Information
Administration (EIA) report will be released on Thursday.
A Reuters poll of analysts forecast the data will show a
700,000-barrel build in crude stocks last week, after a
surprise drawdown last week. []
(Additional reporting by David Sheppard in London, Robert
Gibbons in New York and Jennifer Tan in Singapore; Editing by
Lisa Shumaker)
