UPDATE 7-Oil down 2 pct on supply; demand to hit record in 2010

                                
 * U.S. crude inventories up for 11th straight week - poll
                                
 * Average demand in 2010 to hit record 86.6 million bpd-IEA
                                
 * Chinese GDP may provide support for prices
                                
 * Coming Up: API data 2030 GMT
                                
 
                                
 (Updates prices, adds details)
                                
 By David Sheppard
                                
 LONDON, April 13 (Reuters) - Oil fell for a fifth straight
session on Tuesday, dropping a further 2 percent to below $83 a
barrel, as a forecast increase in U.S. crude stocks highlighted
rising supplies and weak demand in the world's largest energy
consumer.
                                
 Prices took limited support from the latest forecast by the
International Energy Agency (IEA) predicting world demand will
rebound this year to hit its highest ever annual level, as
rising supply is currently weighing on sentiment.[ID:nLDE63C0Q4]
                                
 U.S. crude oil for May delivery <CLc1> slid $1.66 to $83.65
a barrel by 1435 GMT, having earlier hit an April low of $82.51,
down 5 percent from an 18-month high of $87.09 hit last week.
                                
 Brent crude oil, the benchmark for the Atlantic basin and
most of Europe, Africa and Asia, held the premium gained over
U.S. crude on Monday for the first time this year, but dipped by
$1.02 to $83.75 a barrel.
                                
 "The market is turning back into consolidation mode," Credit
Suisse analyst Stefan Graber said.
                                
 "There have been fundamental improvements, but the last two
weeks have not really shown that much improvement to warrant the
strong move higher. There is not a lot of fresh impulse to push
prices further."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
 For a technical analysis of the crude oil price, click
[ID:nSGE638035]
  For a graphic of oil's technical outlook, see:
 http://graphics.thomsonreuters.com/gfx/WT_20101304102725.jpg 
 For a FACTBOX on why WTI is trading below Brent, click:
[ID:nN12201326]
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 U.S. crude inventories probably rose for the 11th straight
week, a Reuters survey showed ahead of an industry report later
on Tuesday, climbing by 1.6 million barrels in the seven days to
April 9.[ID:nN12202827]
                                
 Supplies of distillates, including heating oil and diesel
are predicted to have climbed 1 million barrels, though gasoline
stocks were expected to have fallen by 700,000 barrels.
                                
 
                                
 2010 OIL DEMAND HIGHEST EVER
                                
 While crude oil stockpiles have been mounting in the United
States, global oil demand is still expected to rebound sharply
this year after falling since its previous peak in 2007.
                                
 The IEA said on Tuesday average global oil demand will hit a
record high of 86.6 million barrels per day (bpd) in 2010, as
rapid growth of 1.67 million bpd wipes out two years of falling
consumption caused by higher prices and the economic crisis.
                                
 The Paris-based adviser to 28 industrialised nations raised
its demand forecast by 100,000 bpd from its previous estimate,
though high stock levels and rising output from OPEC members and
other countries is expected to keep the market relatively well
balanced in the coming months. [ID:nLAE002106]
                                
 OPEC has also indicated it will consider raising crude
output if prices rose to $90-$95 a barrel. [ID:nLDE63C15G]
                                
 "There are signs of oil demand picking up in North America
and the Pacific, Asia and the Middle East although consumption
in Europe still looks weak," David Fyfe, head of the IEA's Oil
Industry and Markets Division, told Reuters.
                                
 The agency's monthly oil market report details the shifting
balance in world oil consumption between the developed world and
emerging nations.
                                
 While members of the Organisation for Economic Co-operation
and Development (OECD) have seen their total oil consumption
fall by 5.1 million bpd since 2006 to 45.4 million bpd, rapid
growth in nations like China and India has seen non-OECD demand
soar by 5.5 million bpd to 41.2 million bpd over the same
period. 
                                
 A Reuters survey ahead of China's publication of its latest
GDP data on Thursday showed the Asian powerhouse's economy
probably grew 11.5 percent in the first quarter. That would be
the fastest year-on-year growth since the third quarter of 2007.
[ID:nSGE6380C6]
                                
 China will raise retail gasoline and diesel prices by 4
percent from Wednesday, but analysts said the rise would have
more impact on the profits of refiners who have had margins
squeezed by higher crude prices than consumer behaviour, despite
the fact prices will be about 20 percent above the U.S. national
average. [ID:nTOE63C08K] [ID:nBJK000042]
 (Additional reporting by Alejandro Barbajosa and Wang Tao in
Singapore; Editing by Keiron Henderson)