* U.S. gasoline inventories unexpectedly rise-API
* OPEC sees very comfortable outlook for market fundamentals
* Euro zone Feb industrial output rose more than expected
* Coming Up: EIA stockpile report 1430 GMT
(Updates prices, adds OPEC report paragraph 2)
By Alex Lawler
LONDON, April 14 (Reuters) - Oil rose to trade near $85 a
barrel on Wednesday, ending a five-day losing streak, as rising
stock markets and a weaker dollar outweighed an industry report
showing gains in U.S. inventories.
OPEC in its monthly report said economic optimism was
driving prices and that it saw a "very comfortable outlook" for
oil's fundamentals. The group also nudged up its forecast for
2010 oil demand growth. []
European stocks traded higher while the dollar index <.DXY>
was down 0.1 percent, making dollar-denominated commodities
cheaper for other currency holders. Wall Street was set for a
firmer opening.
Gasoline stocks in top oil consumer the United States
unexpectedly rose last week, the American Petroleum Institute
(API) said on Tuesday, while crude supplies posted their 11th
consecutive increase. []
"The builds were more or less anticipated except for
gasoline," said Christopher Bellew, a broker at Bache
Commodities. "We've moved into a higher range with support at
around $83," he said, referring to Brent crude.
U.S. crude <CLc1> gained 84 cents to $84.89 a barrel by 1118
GMT, within sight of an 18-month high above $87 reached last
week. Brent <LCOc1> rose 60 cents to $85.32, trading at a
premium to the U.S. benchmark for a third straight day.
"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.
Adding to hopes that economic recovery is gaining momentum,
euro zone industrial output rose more than expected in February
and posted its sharpest annual increase in almost two years,
data showed on Wednesday.[]
U.S. crude stocks rose in line with expectations by 1.4
million barrels in the week to April 9, the API said on Tuesday,
while gasoline stocks increased 1.6 million barrels.
The U.S. government's Energy Information Administration
issues its own snapshot of supplies at 1430 GMT.
While rising crude stocks in the United States are an
indicator of tepid fuel demand, the International Energy Agency
said on Tuesday global demand will rebound sharply this year to
record levels. []
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.
China's economy will grow faster in 2010 and 2011 than
previously forecast thanks to a better-than-expected global
recovery and strong investment momentum at home, a Reuters poll
showed.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Amanda Cooper)
