* Oil jumps on equities, corporate earnings strong
* IEA cuts estimated oil demand growth for 2011
* U.S. crude inventories fell 2 mln barrels last week-poll
* Coming Up: API inventory data 4:30 p.m. EDT (2030 GMT)
(Recasts, updates prices)
By Brian Ellsworth
NEW YORK, July 13 (Reuters) - Oil prices rose more than 2
percent toward $77 per barrel on Tuesday as
better-than-expected corporate earnings boosted confidence
about the economy and lifted markets.
The principal U.S. stock indexes rose more than 1 percent
after strong results from aluminum maker Alcoa Inc <AA.N> and
railway company CSX Corp <CSX.N> gave a promising start to the
earnings season. []
"There's no doubt the stock market led the oil market
higher," said Phil Flynn, senior analyst with PFGBest
Research.
At 12 p.m. EDT (1600 GMT), U.S. crude for August delivery
<CLc1> was up $1.97 at $76.92 a barrel, having earlier fallen
to $74.25.
In London, Brent crude oil for August delivery <LCOc1> was
up $2.10 at $76.47 a barrel. The August contract price moved
briefly above September <LCOc2> as traders bet maintenance in
the North Sea would boost Brent in the short term.
Prices were also supported by rising European equity
markets [] and a decline in the dollar <.DXY>. A weakening
dollar is bullish for oil because it makes crude cheaper for
buyers holding other currencies.
Continued strength in U.S. corporate earnings reports would
signal overall strength in the U.S. economy, which would imply
greater future demand for oil.
Oil markets were also watching the latest monthly report
from the International Energy Agency, which revised higher its
2010 oil demand estimate by 80,000 barrels per day, but
forecast slower growth in 2011. []
Global oil demand will grow by 1.35 million bpd next year
to 87.84 million bpd, according to the report by the IEA, which
advises 28 industrial countries, compared with demand growth of
1.77 million bpd expected this year.
"The key element is the gradual scaling back of economic
stimulus programs, which we are assuming takes place over the
next 12 to 15 months," David Fyfe, head of the IEA's Oil
Industry and Markets Division, told Reuters Insider TV.
"That's taking a little of the post-recessionary froth out
of the market."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Reuters Insider interview with IEA's David Fyfe:
http://link.reuters.com/wev96m
Technical view []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Prices were also supported by signs that bulging
inventories in the United States, the world's largest energy
consumer, may have fallen last week.
U.S. crude stockpiles were predicted to have dropped by 2
million barrels in the week to July 9, a Reuters survey showed,
after tumbling 5 million barrels a week earlier because of
disruptions related to Hurricane Alex. []
Distillate inventories probably rose by 700,000 barrels,
the survey showed, while gasoline stocks were expected to have
risen by about 300,000 barrels.
The industry group American Petroleum Institute will
release its weekly inventory report on Tuesday at 4:30 p.m. EDT
(2030 GMT), followed by government statistics from the Energy
Information Administration on Wednesday at 10:30 a.m. EDT (1430
GMT).
(Additional reporting by David Sheppard in London, and
Alejandro Barbajosa; Editing by Lisa Shumaker)
