* U.S. crude inventories up for 11th straight week - poll
* Average demand in 2010 to hit record 86.6 mln bpd-IEA
* Oil pares losses as equities rebound, dollar weakens
* Coming Up: API data 4:30 p.m. EDT
(Adds details, updates prices.)
By Joshua Schneyer
NEW YORK, April 13 (Reuters) - U.S. oil futures fell for a
fifth straight session on Tuesday on investor concern over rising
U.S. crude stockpiles and the effect high oil prices could have on
the fragile economic recovery.
The latest Reuters poll of analysts forecast U.S. crude stocks
rose for the 11th straight time last week, by 1.5 million barrels
to around 357.7 million barrels. That would be their highest level
since June of 2009. []
In the heaviest volume of trading since Feb. 5, front-month
U.S. crude futures <CLc1> fell 29 cents to settle at $84.05 a
barrel. Oil for May delivery recovered from deeper losses earlier
in the day, when prices fell as low as $82.51, after U.S. equities
gained and the dollar weakened. [] []
A sustained boost in U.S. crude stocks draws into question the
pace of a U.S. economic recovery and prospects for fuel demand,
leading investors to sell oil after prices surged to 18-month
highs above $87 a barrel last week.
The American Petroleum Institute will release its weekly U.S.
stocks report on Tuesday at 4:30 p.m. EDT (2030 GMT). The U.S.
Energy Information Administration's data will follow on Wednesday
at 10:30 a.m. EDT (1430 GMT).
"The petroleum markets are coming under selling pressure,"
said Tim Evans, energy analyst at Citi Futures Perspective in New
York, in a written note.
"Ten weeks of rising DOE (U.S.) crude stocks are part of the
story here, with expectations for a further build in the week
ended April 9," he added.
Brent crude oil <LCOK0>, which serves as the main benchmark in
Europe, Asia and Africa, rose 6 cents a barrel to $84.72,
extending the premium Brent gained over U.S. crude on Monday for
the first time this year.
While rising crude stocks in the United States are an
indicator of tepid fuel demand in the world's top consuming
country, Paris-based International Energy Agency said on Tuesday
that global oil demand is still expected to rebound sharply this
year, to record levels, after falling since its previous peak in
2007. []
In a monthly report, the IEA predicted that average world oil
demand in 2010 would rise to a record 86.6 million barrels per day
(bpd), up 100,000 bpd from a previous forecast, as rapid growth of
1.67 million bpd wipes out two years of falling consumption.
[]
But IEA warned that high oil prices could hit demand, and it
also forecast faster crude supply growth from non-OPEC countries
than previously expected, as big producers pump more oil to
capitalize on higher oil prices this year.
"We have been seeing anecdotal evidence of supply increases for
some time, and this confirms the trend that supplies are
improving," investment bank JP Morgan said in its Daily Oil Note.
U.S. equities firmed in late trade, helping oil prices to pare
earlier losses, on investor expectations that U.S. companies would
report higher first-quarter earnings amid an economic recovery.
The Dow Jones industrial average was up 0.2 percent, and remained
above 11,000 points. <DJI>
The U.S. dollar weakened against a basket of foreign
currencies. Oil, priced in dollars, often firms when the dollar
weakens, making the commodity cheaper for holders of other
currencies. <.DXY>
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Technical analysis of the crude oil price, click []
Graphic of oil's technical outlook, see:
http://link.reuters.com/dag67j
FACTBOX on why WTI is trading below Brent, click: []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
U.S. supplies of distillates, including heating oil and
diesel, are predicted to have climbed 1 million barrels last week,
though gasoline stocks were expected to have fallen by 700,000
barrels, according to a Reuters poll.
U.S. retail gasoline demand dropped 3.6 percent in the week to
April 9, and fell 1.1 percent from the same week of 2009,
according to a weekly survey on Tuesday from MaterCard
SpendingPulse. []
IEA's monthly oil market report details the shifting balance
in world oil consumption between the developed world and emerging
nations.
While members of the Organization 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 GDP data on
Thursday showed the Asian powerhouse's economy probably grew 11.5
percent in the first quarter. []
OPEC delegates indicated they would consider raising crude
output if prices rose to $90-$95 a barrel. []
In Venezuela, one of the Western Hemisphere's top oil
exporters, some 800 contractors halted oilfield activities amid a
pay dispute. The stoppage is not expected to have any immediate
effect on Venezuelan crude production, according to state oil firm
PDVSA, since it was carried out on oil rigs that weren't actively
pumping oil. []
(Additional reporting by David Sheppard in London, Robert Gibbons
and Gene Ramos in New York, Alejandro Barbajosa and Wang Tao in
Singapore)
