* EIA reports surprise decline in U.S. crude stockpiles
* OPEC sees comfortable outlook for market fundamentals
* Euro zone Feb industrial output rose more than expected
(Adds U.S. inventory report, updates prices)
By Alex Lawler
LONDON, April 14 (Reuters) - Oil rose to trade around $85 a
barrel on Wednesday, ending a five-day losing streak, supported
by optimism about the economy and a surprise decline in U.S.
crude inventories.
The U.S. government's Energy Information Administration
reported crude oil stocks fell by 2.2 million barrels []
Analysts expected them to rise 1.5 million barrels. Gasoline
stocks fell more than expected.
"A decline in crude stocks and a bigger-than-expected drop
for gasoline stocks coupled with a weaker dollar and global
equity markets rallying puts a bullish backdrop firmly in place,
and a run to $90 and beyond is likely," said Chris Jarvis,
senior analyst at Caprock Risk Management.
U.S. crude <CLc1> gained 93 cents to $84.98 a barrel by 1453
GMT, within sight of an 18-month high above $87 reached last
week. Brent <LCOc1> rose 68 cents to $85.40, trading at a
premium to the U.S. benchmark for a third straight day.
Oil was already up before the EIA report was released at
1430 GMT because of positive corporate earnings and data that
pointed to continued economic recovery.
European shares rose to their highest in more than 18
months, led by banks after JPMorgan Chase & Co <JPM.N> reported
a jump in earnings. Wall Street climbed and 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.
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.
The EIA report also showed gasoline inventories declined by
1.1 million barrels, outstripping forecasts for a fall of
600,000 barrels. []
On Tuesday, industry group the American Petroleum Institute
(API) had said crude supplies posted their 11th consecutive
increase and reported a surprise boost in gasoline stocks.
[]
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. []
Support for oil prices could come from China's GDP data to
be published on Thursday, analysts 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 and
Reuters energy desk in New York; editing by Amanda Cooper)
