* OPEC says no shortage of oil in global market
* NYMEX May crude contract expiration on Tuesday
* Coming up: API oil inventory data, 4:30 p.m. EDT Tuesday
(Recasts, updates prices and market activity, changes byline
and moves dateline from previous LONDON)
By Robert Gibbons
NEW YORK, April 19 (Reuters) - U.S. crude futures edged
higher on Tuesday in seesaw trading as a weaker dollar and
stronger equities provided a lift to prices that had slumped on
lingering concerns about sovereign debt and demand.
The expiring U.S. front-month May contract bounced off
support above last week's low trade of $105.31 a barrel.
Brent crude slumped below the $120 a barrel level for the
first time in two weeks intraday before paring its losses as
the U.S. contract turned higher.
Brokers and analysts also cited support from news that
Treasury Secretary Timothy Geithner said there was "no risk"
that the United States would lose its prized AAA credit rating.
[]
Geithner's comments came a day after Brent and U.S. crude
prices were pressured by rating agency Standard & Poor's
announcement that, although it reaffirmed its credit rating,
the outlook for the United States was lowered from stable to
negative. []
Brent crude for June <LCOc1> fell 54 cents to $121.07 a
barrel by 11:55 a.m. (1155 GMT), after slipping as low as
$119.03.
U.S. crude <CLc1> for May rose 65 cents to $107.77, trading
having bounced off an earlier $105.50 low.
U.S. June crude futures <CLc1> rose 53 cents to $108.22,
also in choppy trading, having found support above its $105.98
low from last week.
Brent's premium to the U.S. June contract <CL-LCO1=R>
narrowed $1.80 to $12.69 a barrel, in a range on Tuesday from
$12.38 to $14.31.
"We had a test of last week's low and the weaker dollar and
U.S. equities rebounding so far all helped crude," said Chris
Dillman, analyst at Tradition Energy in Stamford, Connecticut.
U.S. housing starts and permits rose more than expected in
March, snapping back from the prior month's winter depressed
levels and adding to the respite from fears about high prices
eroding oil demand. []
Solid euro zone economic data helped the euro rebound
against the dollar after its worst day in five months, but
there remained nagging worries about debt troubles in Greece.
OPEC
OPEC Secretary General Abdullah al-Badri, speaking at an
oil and gas trade fair in Tehran, said he did not expect oil to
fall below $100 this year, even though there was no shortage in
the market.
He reiterated OPEC's call on consumer nations to revise
their tax systems to address what he called "exceptional
circumstances," and bring down prices. []
The Organization of the Petroleum Exporting Countries
(OPEC) has so far declined to take any formal action to cool
oil's rally. Underlining that stance on Tuesday, Iran's oil
minister said any increase in output would not bring down
prices. []
U.S. INVENTORY DATA
Weekly oil inventory reports are expected to show U.S.
crude oil stocks rose last week, which would be a seventh
consecutive rise in the government's data. []
A poll of analysts by Reuters on Monday showed gasoline
stocks were expected to be lower, while distillate inventories
were seen edging up.
The report from the industry group American Petroleum
Institute is due for release at 4:30 p.m. EDT (2030 GMT) on
Tuesday.
The U.S. Energy Information Administration's report will
follow on Wednesday at 10:30 a.m. EDT (1430 GMT).
(Additional reporting by Jessica Donati, Caroline Copley and
Ikuko Kurahone in London;editing by Sofina Mirza-Reid)
