* U.S. gasoline inventories unexpectedly rise -API
* Market looks to China GDP, yuan for support -analysts
* Coming Up: EIA stockpile report; 1430 GMT
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, April 14 (Reuters) - Oil climbed to trade above
$84 on Wednesday, ending a five-session losing streak, as
rising stock markets and a weaker dollar offset an industry
report showing gains in U.S. inventories of every fuel
category.
Japan's Nikkei average rose 0.4 percent on Wednesday,
rebounding from two-week lows, while the dollar <.DXY> fell
more than 0.15 percent against a basket of currencies. U.S.
stocks also closed slightly higher on Tuesday. [][][]
Gasoline stockpiles in the United States, the world's top
user, unexpectedly rose last week, the American Petroleum
Institute (API) said on Tuesday, while crude supplies posted
their 11th consecutive increase. []
"Inventories are showing a bearish fundamental picture, but
as long as the U.S. equity market is steady and economic
indicators are showing good numbers, I don't think prices will
fall much," said Tetsu Emori, a fund manager at Tokyo-based
Astmax Co Ltd, who sees oil between $83-$88 in coming weeks.
U.S. crude for May <CLc1> gained 23 cents to $84.28 a
barrel by 0655 GMT, less than $3 from an 18-month high above
$87 reached last week. May ICE Brent <LCOc1> rose 12 cents to
$84.84, trading at a premium to the U.S. benchmark for a third
straight day.
For technical analysis on oil prices, click:
[]
For a graphic of the technical outlook for WTI crude,
click:
http://graphics.thomsonreuters.com/gfx/WT_20101404091404.jpg
Crude stockpiles in the United States rose in line with
expectations by 1.4 million barrels in the week to April 9, the
API said, while gasoline stocks increased 1.6 million barrels
and distillates including heating oil and diesel climbed by a
larger-than-expected 1.7 million barrels. []
Government statistics on U.S. inventories will follow on
Wednesday from the Energy Information Administration (EIA) at
1430 GMT.
While rising crude stocks in the United States are an
indicator of tepid fuel demand, the Paris-based International
Energy Agency (IEA) said on Tuesday that global oil demand will
rebound sharply this year to record levels, after falling since
its previous peak in 2007. []
$90 NEXT TARGET?
The Organization of the Petroleum Exporting Countries
(OPEC) would consider raising output if the crude oil price
rose to around $90 to $95 a barrel, OPEC delegates said on
Tuesday. []
"I don't see any factors that would take us to $90 because
most good factors are already priced in," Emori said.
"Non-commercial paper already holds a huge amount of long
positions."
Money managers extended net crude oil long positions on the
New York Mercantile Exchange to a record 186,732 in the week to
April 6, up from 169,478 in the previous week, the Commodity
Futures Trading Commission said on Friday. []
Support for oil prices could come from China's GDP data to
be published on Thursday, Emori said, while a potential
appreciation of the yuan would also boost values because it
would increase the country's purchasing power of
dollar-denominated commodities.
"People are looking at the possibility of a yuan
revaluation and that could be driving commodities in the next
few weeks," Emori said.
The Chinese economy probably grew 11.5 percent in the first
quarter, a Reuters survey showed. That would be the fastest
year-on-year rate of growth since the third quarter of 2007.
[]
A weaker dollar makes dollar-denominated commodities
attractive on world markets.
(Editing by Ed Lane)
