* API data shows surprise rise in crude stocks
* Coming Up: EIA oil inventory data; 1530 GMT
* Investors positioning before Thanksgiving holiday Thursday
(Updates quotes, data, prices)
By Zaida Espana and Alex Lawler
LONDON, Nov 24 (Reuters) - Oil traded above $81 a barrel on
Wednesday, rising from a near-week's low in the previous session
on expectations of falling inventories in top consumer the
United States.
Weekly U.S. government data due at 1530 GMT is expected to
show a drop in crude oil inventories, although industry group
the American Petroleum Institute reported on Tuesday that crude
stocks rose. []
By 1401 GMT, U.S. crude <CLc1>, also known as WTI, rose 43
cents to $81.68 a barrel. It fell to $80.28 intra-day on
Tuesday, the lowest price since Nov. 17. Brent crude <LCOc1> was
50 cents up at $83.75.
More U.S. economic data depicted a mixed recovery scenario.
Weekly unemployment benefit claims dropped, signalling an
improving labour market; while consumer spending rose for the
fourth consecutive month in October. []
But new orders for U.S. manufactured goods fell
unexepectedly, showing the largest decline in almost two years.
The dollar pared gains versus the euro after the data.
Earlier in the session, the euro <EUR=> plumbed two-month lows
of $1.3284 against the U.S. dollar on uncertainty over Ireland's
debt plan.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a graph comparing peripheral euro zone economies
http://r.reuters.com/zem66q
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> Increasing investor risk-aversion has seen oil prices fall
about 8 percent since reaching a 2010 high of $88.63 on Nov. 11.
"Prices are being influenced by Ireland and euro zone debt
issues, concerns about whether China is going to overtighten as
it tries to fight inflation and last but not least the situation
between North and South Korea," Societe Generale's global head
of oil research Mike Wittner said.
"Markets are jittery and there is the Thanksgiving weekend,
so volumes will be light and prices could be volatile," he said.
"You often get some short covering ahead of a long holiday
weekend, particularly with something like the crisis in Korea."
OIL STOCKS
MF Global analyst Edward Meir predicted the dollar's rally
could go further, weighing on oil and pushing it below $80.
"Further strengthening here could come back and knock energy
prices with more authority next time around, possibly taking
prices through technical support of $79.50," Meir wrote in a
report.
Investors are awaiting data from the U.S. Energy Information
Administration (EIA) due at 1530 GMT, which is expected to
indicate higher oil demand.
Analysts in a Reuters poll expect crude stocks to drop by
2.1 million barrels, extending a fall in stockpiles into a third
week. []
However, the API reported on Tuesday an unexpected 5.2
million-barrel increase in crude stocks on rising imports in the
week to Nov. 19 -- limiting the rebound in prices. []
"The inventory data from the API yesterday, and possible
negative surprise from the (EIA) today, is also responsible for
the not-very-pronounced bounce off the lows," Commerzbank
analyst Eugen Weinberg said.
The API said gasoline stocks fell 499,000 barrels and
distillate stocks dropped 311,000 barrels, smaller declines than
forecast in the poll.
(Reporting by Alex Lawler and Zaida Espana in London and
Florence Tan in Singapore; editing by Keiron Henderson)
