UPDATE 7-US oil rises on weak dollar; Brent pares loss

                                
 * OPEC says no shortage of oil in global market
                                
 * U.S. crude stocks seen up, gasoline down - poll
                                
 * Coming up: EIA oil data, 10:30 a.m. EDT Wednesday
 (Recasts, updates with API inventory data paragraphs 18-20)
                                
 By Robert Gibbons
                                
 NEW YORK, April 19 (Reuters) - U.S. oil rose on Tuesday in
volatile trade as a weaker dollar and stronger equities lifted
prices and offset concerns over sovereign debt and uncertain
demand prospects.
                                
 Brent crude pared losses after tumbling below $120 a barrel
for the first time in two weeks.
                                
 The expiring U.S. May crude oil 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]
                                
 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 crude for June <LCOc1> fell 28 cents to settle at
$121.33 a barrel, after slipping as low as $119.03.
                                
 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, 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:nN19116742]
                                
 U.S. crude oil stocks rose 667,000 barrels last week, the
industry group American Petroleum Institute said in its weekly
inventory report released late on Tuesday. [API/S]
                                
 Gasoline stocks fell 1.8 million barrels and distillate
stocks dropped 3.4 million barrels, falling unexpectedly,
according to the API.
                                
 U.S. crude futures edged up in post-settlement trading and
Brent pared its loss slightly after the report.
                                
 Ahead of the API report, a Reuters survey of analysts
yielded a forecast for crude oil stocks to be up 1.1 million
barrels. Gasoline stocks were seen down 1.5 million barrels and
distillate stocks were forecast to be unchanged. [EIA/S]
                                
 The U.S. Energy Information Administration's weekly data
will follow on Wednesday at 10:30 a.m. EDT.
 (Additional reporting by Joshua Schneyer in New York, Jessica
Donati, Caroline Copley and Ikuko Kurahone in London; Editing
by John Picinich and Sofina Mirza-Reid)