Oil climbs above $115/barrel on lower dollar

                                
 * Oil above $115 as lower U.S. dollar spurs buying interest
                                
 * Analysts expect gasoline stocks drawdown, poll shows
                                
 * Venezuela eyeing output cuts to prevent further price
falls
                                
 By Seng Li Peng
                                
 SINGAPORE, Aug 20 (Reuters) - Oil prices edged up to above
$115 a barrel on Wednesday, as a lower U.S. dollar rekindled
buying in oil and other commodities.
                                
 U.S. crude <CLc1> rose half a percent or 56 cents to
$115.09 a barrel, while London Brent crude <LCOc1> climbed 45
cents to $113.70 a barrel at 0323 GMT.
                                
 "There could be further upside, but it will not be that
much because of the poor economic outlook (in the West)," said
Gerard Rigby of Fuel First Consulting in Sydney.
                                
 The dollar struggled to extend its gains against the euro,
which fell to a six-month low on Tuesday, as traders look
beyond evidence of a euro zone growth slowdown for any signs
the European Central Bank would consider cutting interest
rates.
                                
 An index that measures the dollar's performance against a
basket of six major currencies was nearly flat at 76.745,
slipping from a new high for the year of 77.413 <.DXY> hit on
Tuesday. [ID:nT188073]
                                
 Eyes were also on the upcoming weekly oil products data to
be released by the Energy Information Administration later on
Wednesday in the U.S. [EIA/S]
                                
 The market expects a drawdown in gasoline stocks for the
fourth-straight week as U.S. imports fall, a Reuters poll
showed.
                                
 On average, the poll called for a 900,000 barrel increase
in crude stocks, recovering from a larger-than-expected
drawdown the week before, while gasoline stocks were forecast
to show a 3 million barrel drawdown [ID:nN18275733].
                                
 "If the stocks drop, I expect crude prices to rise but it
will be within the $118-$120 a barrel range. If the stocks
increase, or are flat, I expect prices to be around the
$112-$113 a barrel level," Rigby said.
                                
 Prices are unlikely to go below $100 a barrel in the short
term because robust demand in China and India will help offset
bearish sentiment in the West, he said.
                                
 Additionally, Organization of the Petroleum Exporting
Countries (OPEC) member Venezuela will be proposing an oil
production cut at the next OPEC meeting in September in Vienna
if prices continue to fall, energy minister Rafael Ramirez told
Reuters on Tuesday. [ID:nN19444043]
                                
 "That is why we won't see prices falling below $112 a
barrel," Rigby said.
                                
 SUPPLY THREATS REMAIN
                                
 Political upheaval in producer countries and the threat of
bad weather in the Gulf of Mexico would continue to underpin
crude markets.
                                
 Unrest in Nigeria would cushion any dramatic fall in
prices, as the deteriorating security situation in the Niger
Delta has shut a fifth of its 2 million barrel-per-day (bpd)
oil capacity [ID:nLJ672267].
                                
 Over in Georgia, Russia said its troops will completely
pull out from the country by Friday, but the United States said
it had yet to see any serious withdrawal, and has accused
Russia of targeting civilians [ID:nLK708802].
 (Editing by Nick Trevethan and Ben Tan)