* Some European flights resume
* U.S. stocks rise on earnings
* Coming Up: API inventory report 4:30 p.m. EDT
(Updates prices, inventory poll)
By Daniel Wallis
NEW YORK, April 20 (Reuters) - Oil prices rose on Tuesday,
after three losing sessions, 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 toward 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."
U.S. crude for delivery in June <CLM0> rose 72 cents, or
0.87 percent, to settle at $83.85 per barrel. Trading was
brisk.
Crude for May delivery <CLc1> jumped $2 to settle at
$83.45, after falling nearly 5 percent in the two previous
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 10 of the volume for June.
In London, Brent crude for June <LCOc1> was up 57 cents at
$84.80 a barrel.
The resumption of flights at some European airports also
boosted the market. Investors expected jet fuel demand to
improve after it tumbled at least 1 million barrels per day,
about a fifth of global consumption, after a volcano erupted in
Iceland last week and spewed ash over much of Europe.
[] []
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 was 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).
INVENTORIES SEEN LOWER
U.S. crude oil inventories probably fell last week due to
higher refinery demand following a surprise dip the week
before, an expanded Reuters poll of analysts ahead of weekly
inventory reports showed. [] []
On average, the poll of 13 analysts forecast an average
drawdown of 300,000 barrels, with seven of the forecasters
predicting that stocks fell. Five analysts expected that stocks
rose. One forecast the inventory level would be unchanged.
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.
Goldman unveiled forecast-busting results four days after
the U.S. Securities and Exchange Commission accused the world's
biggest commodity trader of duping clients with its marketing
of a subprime mortgage product. []
OPEC member Kuwait's oil minister said he saw oil trading
in a $75 to $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 and Robert Gibbons in New
York, Emma Farge and Alex Lawler in London, Diana Elias in
Kuwait and Alejandro Barbajosa in Singapore; Editing by Walter
Bagley)
