* Wall Street gains continue to buoy prices
* U.S. API posts unexpected fall in crude stockpiles
* China, Japan, S.Korea March crude imports down
* Goldman raises China '09 GDP growth forecast to 8.3 pct
By Chua Baizhen
SINGAPORE, April 22 (Reuters) - Oil rose for the second day
on Wednesday, nearing $49 a barrel on support from Wall Street
and bullish data on U.S. oil inventories, although gains were
tempered by weak demand data from major consumers.
American Petroleum Institute numbers released after the
close of trade on Tuesday showed an unexpected fall in U.S.
crude stockpiles last week of 1 million barrels, raising hopes
that Energy Information Administration data on Wednesday could
break the pattern of large stock builds.
Comments from U.S. Treasury Secretary Timothy Geithner that
most U.S. banks have adequate capital also soothed nerves that
had been battered by a larger-than-expected writedown by
America's largest bank on Monday that sent oil prices down 9
percent.
But demand for oil remains weak, with data from China,
Japan and South Korea underscoring this trend and OPEC member
Iran saying the cartel may have to cut supply again in
response.
U.S. crude for June delivery <CLc1> rose 25 cents to $48.80
a barrel at 0325 GMT amid thin trading, with prices still below
levels over $50 seen before Monday's equities-led plunge.
London Brent crude <LCOc1> rose 18 cents to $50.00.
Oil prices have been stuck in a narrow band, with few
convincing signs of a sustained demand recovery within sight.
"We see the oil market range bound between $45 and $55 in
the near future. Oil bounced off $45 a few times," said
Clarence Chu, a trader at U.S.-based Hudson Capital Energy in
Singapore.
Oil data for major Asian economies released on Wednesday
showed crude demand is still weak, with March imports for
China, Japan and South Korea all down from last year.
Crude imports for China fell 5.5 percent, Japan imported
18.4 percent less crude based on preliminary data, and South
Korean imports fell 15 percent.
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But adding support to sentiment, a senior Chinese central
bank official said on Wednesday the world's number three
economy had hit bottom in the final three months of 2008 and
had showed positive signs of recovery in the first quarter this
year.
Yi Gang, a vice governor of the People's Bank of China,
added that the Chinese economy would grow close to the
government's target of 8 percent this year.
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Goldman Sachs on Wednesday raised its forecast for China's
GDP growth this year to 8.3 percent from 6.0 percent, crediting
the government's aggressive policy easing and better than
expected results from its stimulus spending. []
Traders will be watching the EIA oil inventory data due
later in the day. []
Analysts polled by Reuters before the API numbers came out
said U.S. crude inventories likely rose for the seventh
straight time last week, with the stockpiles seen at their
highest in nearly 19 years.
(Editing by Michael Urquhart)
