* China tops U.S. as largest energy user -IEA
* Coming Up: API U.S. inventory report; 2030 GMT
* For a technical view, click: []
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, July 20 (Reuters) - Oil climbed to $77 on
Tuesday as forecasts for a fourth consecutive weekly drop in
U.S. crude inventories bolstered the positive influence of
rising stock markets in most of Asia.
Shares of resource firms and banks clawed back some of
their recent losses, helping to boost U.S. crude for August
<CLc1> by 47 cents to $77.01 a barrel at 0644 GMT for a second
straight day of gains.
The August contract expires on Tuesday, while the more
liquid September future was trading up 40 cents at $77.30.
ICE Brent crude <LCOc1> added 34 cents to $75.96.
Prices have been stuck in a range between $71 and $80 for
more than six weeks as volatility related to the European debt
crisis dwindled, while a tighter crude market has offset weaker
U.S. macroeconmic indicators signaling a slower global
recovery.
"I'm pretty sure you will see an increase in demand over
the next few weeks and inventories have been in decline," said
Peter McGuire, managing director at CWA Global Markets in
Sydney, adding prices could top $80 in the first week of
August.
U.S. crude inventories likely fell 1 million barrels on
average last week, a Reuters survey showed on Monday, while
stockpiles of distillate fuel including heating oil and diesel,
probably rose 1.6 million barrels, extending the buildup to the
eighth straight week. []
For gasoline, stocks could have risen 1.1 million barrels
on average, the poll showed. That would be the fourth week of
gains.
Industry group the American Petroleum Institute will
release its inventory report for the week to July 16 on Tuesday
at 2030 GMT, followed by government statistics on Wednesday at
1430 GMT.
STORM WATCH
Adding some more support for oil, a tropical wave centered
around Puerto Rico had a 20 percent chance of becoming the next
tropical cyclone of the Atlantic hurricane season in the next
two days, the U.S. National Hurricane Center said late on
Monday. The season lasts from June through November.
[]
The Hurricane Center has forecast this year's Atlantic
storm season may be the most intense since 2005, when
hurricanes Katrina and Rita nearly paralysed the Gulf of Mexico
U.S. oil industry for weeks, helping oil prices to gain.
"We are talking about one of the worst hurricane seasons,
and if it's going to start, it's going to start shortly,"
McGuire said.
China overtook the United States last year to become the
world's largest energy user, the Financial Times reported on
Monday, citing the International Energy Agency. China's rise to
the top ranking was faster than had been expected in part
because the U.S. has outpaced China in improving energy
efficiency measures over the past decade.
But a senior Chinese official on Tuesday questioned the
IEA's conclusion that China had overtaken the U.S.
[]
The IEA has had a relatively high estimate of China's
energy consumption and carbon dioxide emissions, said Zhou
Xian, spokesperson for China's top energy agency, declining to
give alternative estimates. []
Over the year, oil prices have stayed within a $23 range,
hitting a 19-month peak above $87 and a trough below $65, both
in May.
Wall Street gains on Monday were limited by a drop in U.S.
housing data showing cracks in the recovery of the world's
largest economy as well as disappointing results from Texas
Instruments and International Business Machines, which dragged
equities lower in after-hours trade. []
(Editing by Ed Lane)
