* U.S. gasoline, distillates stocks unexpectedly fall -API
* For a short-term technical outlook for oil,
[]
* Coming Up: EIA inventories, 1430 GMT
(Updates prices, adds China data)
By Alejandro Barbajosa
SINGAPORE, April 21 (Reuters) - Oil rose past $84, nearing
last week's trading ranges before the closure of European
airspace and legal action against Goldman Sachs, boosted by an
unexpected drop in U.S. fuel stockpiles.
Upbeat corporate results also injected optimism into
commodities markets. Apple Inc reported higher-than-expected
earnings on Tuesday, while Goldman Sachs results trounced
forecasts, propelling Japan's Nikkei up by 1.7 percent on
Wednesday.
In the past week, oil prices have been buffeted as the U.S.
Securities and Exchange Commission sued Goldman and an ash
cloud from an eruption in Iceland severely disrupted European
air travel, slashing jet fuel demand.
But flight bans related to the volcanic ash were lifted on
Tuesday and markets shrugged off the Goldman Sachs legal
troubles after other leading companies reported solid earnings.
"At this moment, nothing serious is happening, so the
market has calmed down," said Keichi Sano, general manager of
research at SCM Securities in Tokyo, adding that oil was
trading "comfortably" in a range between $80 and $87 after
having failed to break below $80 in the past three sessions.
"People got scared on Friday but now found out that it is
not urgent to get out of their positions. And gasoline and
diesel stocks fell because of the refinery maintenance season."
The front-month U.S. crude contract <CLc1> has rebounded
almost 5 percent from a low of $80.53 two days ago, helped by
Tuesday's expiration of the May contract.
On Wednesday, June crude added 75 cents to $84.60 a barrel
at 0700 GMT, less than $3 from an 18-month high reached on
April 6. ICE Brent for June <LCOc1> rose 81 cents to $85.61.
REFINERIES BOOST RUNS
Prices also got a boost from unexpected drops in U.S fuel
inventories last week and a larger-than-forecast decline in
crude inventories reported by the industry-funded American
Petroleum Institute on Tuesday. []
Higher processing rates at refineries offset a rise in
imports, leading to a 741,000-barrel drop in crude inventories,
according to the API. Gasoline stocks fell 1.7 million barrels
in the week to April 16, while analysts had expected a
400,000-barrel gain.
And distillates, including heating oil and diesel, lost a
sizable 3.1 million barrels, counter to analysts' forecasts for
an 800,000-barrel increase.
Attention was set to turn to government statistics on
inventories from the Energy Information Administration (EIA)
due at 1430 GMT.
Traders were also looking at data out of China, which shows
diesel exports in March rose to the highest this year, while
gasoline exports rebounded to levels similar to January as oil
firms draw down their brimming fuel stockpiles after months of
hefty production. []
"The Chinese factor is crucial for the commodities markets,
as well as currency issues," Sano said.
China is under pressure to boost the value of its currency
because trading partners including the U.S. say it is
undervalued. A stronger yuan would mean larger oil imports by
the world's second-biggest oil consumer.
The dollar <.DXY> was little changed against a basket of
currencies on Wednesday.
European airports started to return to life on Tuesday
after five days cut off from the rest of the world as
authorities downgraded the risk that volcanic ash posed to
aircraft. []
(Editing by Ed Lane, Himani Sarkar)
