(Repeats, changes tag to UPDATE 9, no change to headline or
text)
* Dollar weaker on monetary easing expectations, lifts oil
* China Sept crude imports up 35 pct vs yr ago, boosts oil
* Coming Up: EIA oil inventory data 10:30 a.m. EDT Thurs
(Updates with API inventory data, price move on data,
paragraphs 18-20)
By Robert Gibbons
NEW YORK, Oct 13 (Reuters) - Oil prices rose above $83 a
barrel on Wednesday as the dollar slumped amid reinforced
expectations of more monetary easing by the U.S. central bank
and on news that China's crude imports jumped in September.
The U.S. dollar fell against most currencies, a day after
minutes from the Federal Reserve's September meeting reinforced
expectations for more monetary easing in the United States.
Oil brokers and analysts said the euro's failure early on
Wednesday to hold above $1.40 had limited losses by the dollar
and gains by oil.
U.S. crude for November <CLc1> delivery rose $1.34, or 1.64
percent, to settle at $83.01 per barrel, having traded from
$81.68 to $83.45. In London, ICE Brent November crude <LCOc1>
rose $1.14, or 1.37 percent, to settle at $84.64 a barrel.
"It's mainly the dollar, which weakened on the expectation
there will be quantitative easing," said Chris Dillman, analyst
at Tradition Energy in Stamford, Connecticut. "The IEA raised
its (2010) demand expectation a little and the Chinese imports
number helped and the stock market is up."
U.S. stock indexes rose, boosted by strong company
earnings, upbeat data from China and anticipation of more
government debt purchases by the Fed, called quantitative
easing, or QE2 on financial markets.
"QE2 is influencing prices via the U.S. dollar, on
expectations that further easing will push the dollar lower and
send oil rising," Commerzbank analyst Carsten Fritsch said.
A weak dollar can lift oil prices by making
dollar-denominated crude oil less expensive for buyers using
other currencies, lowering the value of greenbacks paid to
producers and attracting investors looking to shift from cash
to commodities. (Graphic: http://link.reuters.com/bet38p )
Oil prices drew support early from data showing China's
crude oil imports rose 35 percent in September from a year
earlier. [] The International Energy Agency said
China had overtaken the United States as the world's largest
energy consumer. []
The IEA on Wednesday said oil demand growth was expected to
accelerate for the rest of 2010, but the agency revised lower
its demand expectation for 2011. []
The U.S. Energy Information Administration on Wednesday cut
its 2011 oil demand growth forecast slightly, but also raised
its 2010 forecast. [] The EIA also raised its 2010
non-OPEC oil output growth expectation. []
French unions extended a rail strike into a second day and
blockaded oil refineries to protest pension reforms, but there
were signs the stoppages could be losing steam as broad
participation wavered. []
The IEA said France tapped emergency oil stocks as the
country copes with a near halt in oil refining due to strikes
at refineries and its top oil port. []
Organization of the Petroleum Exporting Countries oil
ministers were set to meet in Vienna on Thursday for the first
time in seven months.
OPEC has signaled it will keep output targets steady. But
there have been calls for more target compliance and concern
about the declining value of the dollar. []
U.S. INVENTORIES
While the dollar's lower value helped push oil prices up,
traders and analysts remain concerned about high U.S. oil
inventories and tepid demand.
Ahead of weekly inventory reports, a Reuters analyst survey
yielded a forecast for U.S. crude inventories to have risen 1.1
million barrels last week. [] Distillate stocks, including
heating oil and diesel, were expected to have declined by 1.1
million barrels, with gasoline stockpiles declining 1.0 million
barrels.
Late on Tuesday, industry group the American Petroleum
Institute reported crude oil stockpiles fell 4 million barrels
in the week to Oct. 8. []
Gasoline stocks fell 1.9 million barrels and distillate
stocks fell only 254,000 barrels, according to the API.
Oil futures prices extended gains in post-settlement
trading on the API news, rising to $83.19, up $1.52 at 4:51
p.m. EDT (2051 GMT).
The government's inventory and demand data from the U.S.
EIA will arrive on Thursday at 11 a.m. EDT (1500 GMT).
The reports were delayed a day because of Monday's U.S.
Columbus Day holiday.
(Additional reporting by Zaida Espana in London and
Alejandro Barbajosa in Singapore; Editing by David Gregorio)
