* Weak dollar, equity gains help drive oil to $60 a barrel
* China exports slump in April but crude imports up
* U.S. crude stocks probably rose for 10th week-poll
(Updates prices)
By Jane Merriman
LONDON, May 12 (Reuters) - Oil prices hit $60 a barrel on
Tuesday for the first time in six months, boosted partly by a
weak dollar and gains on equity markets.
But prices retreated from their highs when U.S. equity
markets turned negative <.N>
U.S. crude <CLc1> was up 53 cents at $59.03 a barrel by 1432
GMT. It earlier touched $60.08 a barrel, its highest since
November last year. It has risen about 20 percent this month.
London Brent crude <LCOc1> was up 64 cents at $58.12 a
barrel.
The U.S. dollar fell to a four-month low as optimism about
the economic climate reduced its appeal as a safe haven
[]. Oil, which is priced in dollars, tends to rise when the
dollar falls.
Gains in equity markets have also driven oil higher, with
oil and equities being closely correlated since equity markets
bounced in April. []
"Oil is riding the coat-tails of the equity market bounce
for now, largely ignoring the build-up in oil inventories," said
Harry Tchilinguirian, senior oil analyst at BNP Paribas.
"Weakness in oil fundamentals is reflected in elevated
inventories, yet the market's price assessment appears to have
brushed this aside."
The global economic downturn has hit demand for oil, which
has created a massive supply overhang.
There is an estimated 100 million barrels of crude oil
stored at sea on tankers. U.S. crude inventories are at their
highest in 19 years. []
The rally in global equity markets in anticipation that the
economic climate might improve has boosted oil despite its
bearish supply/demand picture.
The dollar has also played a part.
"The U.S. dollar is slightly weaker which could be spurring
a bit of strength," said Tony Machacek at Bache Commodities Ltd.
The global downturn has pushed oil down from a record high
above $147 a barrel hit last July to a low in December of
$32.40.
Prices have rebounded this year.
U.S. crude is up more than 80 percent from a January low of
$32.70 a barrel.
Crude oil demand in China, the world's second-largest energy
user, provided support for prices with Chinese customs
confirming on Tuesday that crude imports in April rose to reach
the second-highest daily rate on record. []
But the country's export data proved disappointing.
[]
U.S. oil inventory data due on Wednesday is forecast to show
a further rise in crude oil stocks.
U.S. crude stockpiles probably rose for the 10th straight
time last week, up by 1.2 million barrels. Distillate stocks are
likely to have risen by 1.1 million and gasoline stocks by
500,000 barrels, a preliminary Reuters poll showed. []
(Additional reporting by Chua Baizhen; editing by Keiron
Henderson)
