UPDATE 6-US oil rises on dollar, technicals; Brent pares loss

                                
 * OPEC says no shortage of oil in global market
                                
 * U.S. crude stocks seen up, gasoline down - poll
                                
 * Coming up: API oil inventory data, 4:30 p.m. EDT Tuesday
                                
 NEW YORK, April 19 (Reuters) - U.S. oil rose on Tuesday and
Brent reduced losses in volatile trade as a weaker dollar and a
rise in equities markets lift prices that earlier slumped on
concern over sovereign debt and uncertain demand prospects.
                                
 After tumbling below $120 a barrel for the first time in
two weeks, Brent came back as U.S. crude futures turned
higher.
                                
 The expiring U.S. front-month May contract posted the day's
biggest gain, reversing after support firmed above last week's
low trade of $105.31 a barrel.
                                
 Treasury Secretary Timothy Geithner said there was "no
risk" the United States would lose its AAA credit rating,
remarks considered supportive coming a day after rating agency
Standard & Poor's lowered its outlook for U.S. debt to negative
from stable. [ID:nN19146862] [ID:nN18195555]
                                
 Brent crude for June <LCOc1> fell 28 cents to settle at
$121.33 a barrel, after slipping as low as $119.03.
                                
 Expiring U.S. crude <CLK1> for May rose $1.03 to go off the
board at $108.15, bouncing early off a $105.50 low. U.S. June
crude <CLM1> rose 59 cents to settle at $108.28, recovering
after sliding to $106.01, just above the contract's $105.98 low
from last week.
                                
 Brent's premium to the U.S. June contract <CL-LCO1=R>
narrowed 87 cents to $13.05 a barrel, based on settlements,
swinging in a range on Tuesday from $12.38 to $14.31.
                                
 "Hot money chased Brent on the way up, and it became a
momentum trade, more so than for WTI. If money managers decide
the play is over, they are going to run for the exits," said
Timothy Evans, energy analyst at Citi Futures Perspective in
New York.
                                
 EURO REBOUNDS, DOLLAR WEAKENS
                                
 Solid euro zone economic data helped the euro rebound
against the dollar after its worst day in five months. [USD/]
                                
 The dollar index <.DXY>, measuring the greenback against a
basket of currencies, weakened. A weaker dollar can lift oil
prices by making dollar-denominated crude less expensive for
consumers using other currencies and by drawing investment away
from foreign exchange markets seeking better returns.
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Sovereign credit risk graphic: http://r.reuters.com/dys98r
                                
S&P cuts U.S. credit outlook: http://r.reuters.com/cys98r
                                
More on Middle East unrest:        [nTOPMEAST] [nLDE71O2CH]
                                
Libya Graphics               http://link.reuters.com/neg68r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 U.S. equities rose on encouraging earnings from healthcare
and materials companies and unexpected strength in housing, but
weakness in technology and banks tempered gains. [.N]
                                
 OPEC SEES $100 OIL IN 2011
                                
 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. [ID:nPOM923543]
                                
 The Organization of the Petroleum Exporting Countries
(OPEC) has declined to take any formal action to cool oil's
rally. Underlining that stance on Tuesday, Iran's oil minister
said any output increase would not bring down prices.
[ID:nPOM926808]
                                
 Meanwhile, threats to Africa and Middle East oil supplies
that helped lift oil to recent 32-month peaks remain in play as
Libya's conflict continued and protests in Yemen and Syria
flared. [ID:nLDE73I1H4] [ID:nLDE73I1BU] [ID:nLDE73I0RQ]
                                
 Rioting broke out in northern Nigeria in response to
President Goodluck Jonathan's election victory in the
OPEC-member country. [ID:nLDE73I1AT]
                                
 U.S. OIL DATA
                                
 U.S. retail gasoline demand rose last week from the prior
week, but high prices kept demand down versus year ago,
MasterCard Advisors' SpendingPulse said in a report ahead of
weekly oil inventory reports detailing U.S. stockpiles and
demand levels. [ID:nEGE7DB01D]
                                
 U.S. crude oil stocks are expected to be up a seventh
consecutive week, according to a Reuters survey of analysts on
Tuesday. Gasoline stocks were expected to be lower, while
distillate inventories were seen unchanged. [EIA/S]
                                
 A report from industry group American Petroleum Institute
will be released at 4:30 p.m. EDT (2030 GMT) on Tuesday. The
U.S. Energy Information Administration's weekly data will
follow on Wednesday at 10:30 a.m. EDT.
 (Additional reporting by Jessica Donati, Caroline Copley and
Ikuko Kurahone in London; Editing by John Picinich and Sofina
Mirza-Reid)