* EU, IMF agree 110 bln euro bailout for Greece
* Oil spill bears down on Gulf coast as Obama visits
* Spill could slow U.S. crude imports, hamper energy output
* For a technical graphic on oil prices, see:
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By Fayen Wong
PERTH, May 3 (Reuters) - Oil prices rose above $86 a barrel
in thin trade on Monday as a record bailout for debt-stricken
Greece lifted investor risk appetite and hopes for a drawdown
in U.S. crude stocks also lent support.
European finance ministers agreed to a record 110 billion
euro ($147 billion) bailout for debt-stricken Greece on Sunday,
partially allaying fears of a spreading debt crisis in the
16-nation euro zone, which investors worry could derail the
fragile global economic recovery. []
U.S. crude for June delivery <CLc1> rose 39 cents to $86.54
a barrel by 0104 GMT. London Brent crude <LCOc1> edged up 17
cents to $87.61.
Trading in Asia is likely to be thin on Monday with many
markets closed for public holidays including a three-day
shutdown in Japan for Golden Week.
"Obviously risk appetite has improved on the back of the
Greece bailout," said Ben Westmore, an analyst at National
Australia Bank.
"The WTI (West Texas Intermediate) market is also supported
by the oil slick in the U.S. Gulf, which could slow tanker
traffic and help draw down crude inventories at the Cushing,
Oklahoma, hub."
A vast oil slick bore down on the U.S. Gulf Coast on
Sunday, as desperate efforts to check the oil flow and disperse
and contain the spreading slick were being hampered by high
winds and rough seas. []
But the oil slick has not yet led to any shipping
restriction in the U.S. Gulf Channels, the head of the U.S.
Coast Guard said on Saturday. []
In the first sign that the massive oil spill, from a well
owned by BP, was affecting the region's energy production, the
U.S. government said two offshore production platforms in the
area have been shut as a safety precaution, as efforts to
complete a relief well to stem the oil flow could take 90 days.
For more stories on the oil spill, click on []
The U.S. dollar remained flat while the market digested
weekend news that China had increased bank cash reserve
requirements for the third time this year.
China's monetary tightening is likely to hit Asian share
markets which were already bracing for a fall following U.S.
stocks tumbling on Friday to close out the worst week since
January as news of a criminal probe into Goldman Sachs unnerved
investors. See []
Comments Saudi Arabian Oil Minister Ali al-Naimi, who is in
China for the Shanghai world Expo 2010, could also set fresh
directions for oil prices.
"The rescue package for Greece is a band-aid solution and
it could take awhile to see if it would work. With Spain and
Portugal also facing huge debt repayments, the Greece bailout
is seen as a short term relief for debt crisis in Europe,"
Westmore said.
On the geopolitical front, Iran -- whose nuclear dispute
has raised the possibility of new regional conflict -- said on
Sunday it has developed a short-range defence system to combat
Cruise missiles. []
Money managers cut net crude oil long positions on the New
York Mercantile Exchange in the week to April 27, Commodity
Futures Trading Commission data showed on Friday.
[]
(Editing by Ed Lane)
