* OPEC sees comfortable outlook for market fundamentals
* Euro zone Feb industrial output rose more than expected
* Coming Up: EIA stockpile report 1430 GMT
(Recasts, updates prices)
By Alex Lawler
LONDON, April 14 (Reuters) - Oil rose to trade near $85 a
barrel on Wednesday, ending a five-day losing streak, as
optimism about the economy outweighed forecasts for a further
rise in U.S. inventories.
European shares rose to the highest in more than 18 months,
led by the banking sector after JPMorgan Chase & Co <JPM.N>
reported a jump in first-quarter earnings. The improvement in
risk appetite also weakened the dollar.
"It seems that the economies are improving around the world,
not only in the emerging markets," said Daniel Briesemann,
analyst at Commerzbank, adding that was "definitely" supportive
for oil and commodities.
U.S. crude <CLc1> gained 80 cents to $84.85 a barrel by 1254
GMT, within sight of an 18-month high above $87 reached last
week. Brent <LCOc1> rose 78 cents to $85.50, trading at a
premium to the U.S. benchmark for a third straight day.
The U.S. government's Energy Information Administration
issues its snapshot of supplies in the world's largest consumer
at 1430 GMT. Analysts expect a 1.5 million-barrel rise in crude
oil stocks.
On Tuesday, industry group the American Petroleum Institute
(API) said crude supplies posted their 11th consecutive increase
and reported a surprise boost in gasoline stocks. []
"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,
data showed on Wednesday. Sales at U.S. retailers rose more
strongly than expected in March.
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. []
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. <POLL-CN>
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by Keiron Henderson)
