* Some European flights resume
* U.S. stocks rise on earnings
* Coming Up: API inventory report; 4.30 p.m. EDT
(Recasts, adds quote, details, updates prices)
By Daniel Wallis
NEW YORK, April 20 (Reuters) - Oil rose on Tuesday after
three days of losses as the threat from Iceland's volcanic ash
cloud receded, letting some European flights resume, while U.S.
stocks edged higher on quarterly results.
Oil investors have been watching Wall Street and other
financial markets for signs of economic recovery that would
point the way to higher fuel consumption.
"Crude futures are up, tracking equities, which are a
little stronger," said Tom Knight, a trader at Truman Arnold in
Texarkana, Texas. "Also, there was no technical follow-through
after May crude hit a low at around $80.50 on Monday. That
helped create the bounce we are seeing today."
Trading on U.S. crude for June delivery <CLM0> was brisk,
rising 1.17 percent to $84.10 per barrel by 1:45 p.m. (1545
GMT). Brent crude for June <LCOc1> rose 72 cents to $84.95.
U.S. crude for May delivery <CLc1> jumped about $2 to
$83.40, after falling nearly 5 percent in last two sessions, in
a spate of short-covering late in the contract's last day.
Trade volumes for the May contract were low by
mid-afternoon, less than a tenth of the volume on June.
Resumption of flights at some European airports also gave
the market a boost. Investors expected jet fuel demand to
improve after it tumbled at least 1 million barrels per day
(bpd), about a fifth of global consumption, since a volcano
erupted in Iceland last week. [] []
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 is a supply glut,"
said Carsten Fritsch, a commodities analyst at Commerzbank.
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.
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 made oil cheaper for buyers holding other currencies.
Energy shares advanced on the higher oil prices, and more
than three stocks rose for every one that fell on the New York
Stock Exchange. []
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 Gene Ramos in New York, Emma Farge
and Alex Lawler in London, Diana Elias in Kuwait and Alejandro
Barbajosa in Singapore; Editing by David Gregorio)
