* US May refined products contracts approaching expiration
* Dollar stays under pressure, helps support oil, gold
* Coming up: CFTC positions data at 3:30 p.m. EDT Friday
(Recasts, updates prices and market activity)
By Robert Gibbons
NEW YORK, April 29 (Reuters) - Oil prices pushed higher on
Friday, on pace to post its eighth consecutive monthly rise,
lifted by the weak dollar and turmoil in North Africa and the
Middle East that offset concerns about slowing U.S. economic
growth and the threat to demand from high prices.
On the last trading day of April, both Brent and U.S. crude
were heading for an eighth consecutive month of gains. The U.S.
string would be the longest run of monthly increases since 1983
when the light sweet crude contract was introduced on the New
York Mercantile Exchange, according to Reuters data.
Traders also eyed U.S. front-month May gasoline <RBK1> and
heating oil <HOK1> futures that expire at the end of Friday's
session.
Both U.S and Brent crude bounced from early dips after euro
zone data showed the inflation rate rose further above the
European Central Bank's target in April, helping push the
dollar index against a basket of major currencies <.DXY> to a
three-year low. []
Brent crude for June <LCOc1> rose 61 cents to $125.63 a
barrel by 12:24 p.m. (1624 GMT). Brent's 2011 peak of $127.02
was reached on April 11.
U.S. crude <CLc1> for June rose 54 cents to $113.40.
U.S. crude reached $113.97 on Thursday, the highest
intraday price since prices reached $130 on Sept. 22, 2008.
"Oil is reacting to the dollar. The dollar index looked
like it was trying to find at least a temporary base around the
73 area. Oil is waiting for something new to push it higher,"
said Richard Ilczyszyn, senior market strategist at
Lind-Waldock in Chicago.
Higher interest rates in Europe compared to the U.S. have
undermined support for the U.S. dollar, pushing up the euro by
11 percent so far this year.
Thursday's report that growth in the U.S. gross domestic
product slowed more than expected in the first quarter
reinforced the perception that the U.S. central bank will
continue with its loose monetary policy. []
"Yesterday's three-year lows in the dollar index following
the mid-week Fed statement strongly suggests a market dynamic
that is not yet ready to reverse," Jim Ritterbusch, president
at Ritterbusch & Associates in Galena, Illinois, said in a
note.
"Consequently, oil will continue to be valued as an asset
class or inflation hedge along with other commodities such as
the gold market."
Crude oil trading volumes remained tepid, dampened by a
holiday in the United Kingdom.
Volatility and uncertainty amid the pan-Arab protests and
Libya's conflict have tempered trading, indicated by the nearly
130,000-lot deficit of the U.S. 30-day average volume to the
250-day average, according to Reuters data.
AFRICA, MIDEAST TURMOIL
Libya's conflict spilled beyond its borders as forces loyal
to leader Muammar Gaddaffi attacked the Tunisian town of
Dehiba, near the Libyan border. [].
Morocco, which borders oil and gas producer and OPEC-member
Algeria, said a bomb that killed at least 14 people on Thursday
was a terrorist act. []
In the Middle East, tensions escalated in Syria and tens of
thousands rallied across the country demanding political
freedoms. []
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For a 24-hour technical outlook on Brent:
http://graphics.thomsonreuters.com/WT1/20112904083345.jpg
For a wrap on U.S. growth, inflation: []
For stories on Libya & Middle East crisis: []
For a TAKE-A-LOOK on Middle East, N Africa:[]
For top stories on the global economy: []
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EYEING HIGH PRICE
Oil's price rise could be tempered if evidence that high
prices are eroding demand starts to confirm forecasters' fears
that they are slowing consumption and the global economy.
U.S. consumer spending rose as households stretched to
cover the higher cost for food and gasoline as inflation posted
its biggest year-on-year rise in 10 months. []
Separate reports showed U.S. Midwest factory activity and
that while U.S. consumer sentiment rose as a sharp increase in
gasoline prices was viewed as being temporary, consumers still
anticipated additional price increases.
Complaints about high prices were the most frequent since
2008 and half of all households said their finances had
worsened, according to the survey.
(Additional reporting by Gene Ramos in New York and Dmitry
Zhdannikov in London; Editing by David Gregorio)
