* China September trade data shows recovery there underway
* Gold hits record high; JP Morgan 3Q earnings jump
* US weekly inventory data could show build in crude stocks
(Updates prices)
By Alex Lawler
LONDON, Oct 14 (Reuters) - Oil surged for a fifth day on
Wednesday to a 2009 high above $75 a barrel, boosted by a weak
dollar and optimism about a global economic rebound that will
lead to higher energy demand.
The dollar, which fell to its lowest in more than a year
against a basket of currencies, also boosted gold, which hit a
record. Dollar weakness makes oil and bullion more affordable
for non-dollar holders.
"The recent rise in oil prices is not driven by fundamentals
but by financial market developments and hopes that oil demand
will recover sooner rather than later," said Carsten Fritsch,
analyst at Commerzbank. "But we still need some confirmation of
this hope."
U.S. crude jumped 95 cents to $75.10 a barrel by 1354 GMT,
after climbing to $75.32, the highest this year, earlier in the
session. Brent crude <LCOc1> rose 67 cents to $73.07.
Oil has more than doubled from below $33 in December driven
in part by hopes of economic recovery, a rally that many in the
industry have seen as running ahead of weak oil demand, high
inventories and abundant supply.
Now though, there is more acceptance that oil use is on an
upward track. Producer group OPEC on Tuesday became the latest
forecaster to bump up global oil demand estimates for this year
and 2010. []
"The market is increasingly recognizing that oil demand is
indeed recovering," said Mike Wittner at Societe Generale.
"That's based on two things -- stabilisation in U.S. demand and
strong growth in Chinese demand."
"But it's a bit of a stretch to say that slowly improving
fundamentals have caused oil prices to go up by $5 in the past
week. The dollar-inflation story has been a part of that."
CHINESE IMPORTS
Asian and European data on Wednesday supported a more
optimistic view of the economy.
Chinese trade figures provided fresh evidence of recovery in
the world's second-largest oil user, while oil data showed
strong year-on-year growth in China's oil imports in September.
[] []
And Euro zone industrial output accelerated
month-on-month in August, while July production was revised
upwards, providing evidence the area's economy is likely to have
started growing in the third quarter. []
Earnings are due from a number of major U.S. firms this
week, and the oil market is tracking results for signs of
economic rebound.
JPMorgan Chase & Co <JPM.N> reported a sharp rise in
third-quarter results as underwriting revenue at its investment
bank offset deeper losses on credit cards and other consumer
loans. []
Cold weather in the United States has also supported prices.
Heating demand will be higher than normal this week, the
National Weather Service said on Monday. []
U.S. inventory data from the American Petroleum Institute was
due later on Wednesday, the latest indication of demand in the
world's top consumer. A Reuters poll forecasts a 700,000-barrel
rise in crude stocks. []
Analysts who use past price moves to predict future
direction said a further rally would depend on U.S. crude, also
known as WTI, closing above $75 resistance.
"The advance in WTI is in our view purely technical and
dollar linked -- hence reversals can be sharp when and if the
dollar stops to fall off the cliff," said Olivier Jakob, analyst
at Petromatrix.
(Additional reporting by Jennifer Tan in Singapore; Editing by
William Hardy and Sue Thomas)
