* Equities rally to boost commodities risk appetite
* IEA's Tanaka says high prices are dampening demand
* Technicals show Brent crude to rise to $124
* Coming Up: EIA oil data; 1430 GMT
* U.S. March existing home sales; 1400 GMT
(Updates prices, adds technical analysis, IEA comments)
By Francis Kan
SINGAPORE, April 20 (Reuters) - Brent crude rose to $122 a
barrel on Wednesday as a rebound in equities and a larger than
expected draw on U.S. oil product stocks helped ease fears over
eroding demand.
Asian stocks rose in early trade following a rebound on Wall
Street and in Europe on upbeat corporate results from investment
bank Goldman Sachs and chip maker Intel Corp .
"Last week we saw some disappointing results in tech shares
like Google, but the Goldman Sachs earnings were better than
expected and that resulted in a reversal in risk appetite, which
is good for commodities," said Serene Lim, a commodities analyst
with ANZ Bank in Singapore.
ICE Brent crude <LCOc1> for June gained 52 cents to $121.85
a barrel by 0555 GMT, after touching $122 earlier. U.S. crude
<CLc1> was up 75 cents at $109.03 a barrel.
The dollar index , measuring the greenback against a
basket of currencies, extended its losses after solid euro zone
economic data helped the euro rebound against the dollar.
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.
U.S. Treasury Secretary Timothy Geithner, going on the
offensive one day after Standard & Poor's threatened to lower
its top-tier rating on U.S. government debt, said on Tuesday
there was "no risk" of a downgrade, and prospects for a
deficit-reduction deal were improving. []
U.S. OIL DATA
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.
Gasoline stocks fell 1.8 million barrels and distillate
stocks dropped 3.4 million barrels, falling unexpectedly,
according to the API.
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.
"The API numbers were rather bullish, and set a good
platform for the oil data out of the U.S. tonight to boost
prices," said Lim.
The U.S. Energy Information Administration's weekly data
will follow on Wednesday at 1430 GMT.
Brent oil <LCOc1> could rise to $124 per barrel as a
retracement from its April 11 high of $127.02 could have been
completed, said Reuters market analyst Wang Tao. []
DEMAND, EURO ZONE CONCERNS PERSIST
Oil prices could come under pressure from concern over high
oil prices leading to demand destruction, while a possible Greek
debt restructuring that could further strain the euro zone is
also likely to weigh on sentiment.
High oil prices have dampened demand from big users such as
China and the United States, the International Energy Agency's
Executive Director Nobuo Tanaka told Reuters on Wednesday.
[]
Warnings of demand destruction have grown after world oil
prices rocketed up to 2-1/2-year highs of $127 a barrel earlier
this month amid worries of unrest in the Middle East and North
Africa.
Tension persisted in the Middle East after Yemeni police
opened fire on protesters in Sanaa and Taiz on Tuesday, killing
at least three people, as protesters tried to step up their
campaign to end President Ali Abdullah Saleh's 32-year rule.
[]
In Syria, forces loyal to Muammar Gaddafi renewed the
bombardment of Misrata, causing several casualties, an Amnesty
International researcher in the besieged Libyan city said.
[]
(Editing by Clarence Fernandez)
