UPDATE 5-Oil rises to $72 on positive demand outlook

                                
 * IEA global oil demand forecast increase supports
                                
 * Dollar pulls up from 14-month trough
                                
 * Brimming U.S. oil product stocks still in focus
  (Recasts, updates throughout, previous dateline LONDON)
                                
 By Rebekah Kebede
                                
 NEW YORK, Oct 9 (Reuters) - Oil rose to more than $72 a
barrel on Friday, as a positive demand outlook from the
International Energy Agency outweighed a bounce in the dollar.
                                
 U.S. crude for November delivery <CLc1> climbed 35 cents to
$72.04 a barrel by 11:07 a.m. EDT (1507 GMT).
                                
 London Brent crude <LCOc1> rose 44 cents to $70.21 a
barrel.
                                
 "On balance, the IEA's upward revision of its global oil
demand growth forecast for 2010 is supportive," said Andy
Lebow, a broker at MF Global, New York.
                                
 The International Energy Agency increased its global oil
demand growth estimate for 2010 as well as for the rest of
2009. [ID:nL9515065]
                                
 Earlier this week, the U.S. government Energy Information
Administration raised its oil demand forecast amid signs the
economic climate is improving. [EIA/S]
                                
 Traders said that a Friday report that crude oil and middle
distillate stocks in 16 European countries were lower at the
end of September than a month earlier may also have lent some
support to the oil prices. [ID:nL9241285]
                                
 Oil prices also got a boost from U.S. stocks, which rose
Friday as investors were encouraged by upbeat broker comments
on key tech companies such as Apple. [.N]
                                
 HIGH SUPPLIES, STRONGER DOLLAR WEIGH
                                
 Despite the higher forecasts for global oil demand,
however, inventories of crude oil and products remain high in
the United States, the world's top oil consumer.
                                
 U.S. gasoline stocks leapt 2.9 million barrels last week,
nearly three times the build analysts had expected. Distillate
stocks, including diesel and heating oil -- rose by 700,000
barrels to fresh 26-year highs, the Energy Information
Administration Agency reported Wednesday.
                                
 Higher OPEC seaborne oil exports, excluding Angola and
Ecuador, also weighed on the market. Such exports will rise
160,000 barrels per day (bpd) in the four weeks to Oct. 24, to
22.65 million bpd, according to Roy Mason, an analyst at
British consultancy Oil Movement. [ID:nWLA5234]
                                
 In earlier trading Friday, oil prices were pressured by a
stronger U.S. dollar, which was supported by comments from U.S.
Federal Reserve Chairman Ben Bernanke indicating that monetary
policy might have to be tightened as an economic recovery takes
hold. [ID:nFEDAHEAD]
                                
 A weaker greenback tends to support oil because
dollar-priced commodities become cheaper for buyers using other
currencies.
                                
 Adding credence to the dollar, Kuwait's finance minister
said on Thursday oil trading would remain in U.S. dollars, the
latest denial of a report this week about a move to replace the
world's reserve unit with a basket of currencies.
[ID:nL8307092]
                                
(Additional reporting by Robert Gibbons and Gene Ramos in
New York, Emma Farge in London and Felicia Loo in Singapore;
Editing by Lisa Shumaker)