* Asia stocks, euro up as IMF, EU agree to Ireland bail-out
* Investors shrug China's measures to fight inflation
(Updates prices) )
By Florence Tan
SINGAPORE, Nov 22 (Reuters) - Oil rose on Monday to more
than $82 a barrel, rebounding from two straight weeks of
losses, as the dollar weakened after Ireland sought an
international bailout to tackle its banking and budget crisis.
The euro, most Asian stocks and commodities got a fillip
as optimism over the bailout outweighed concerns about tighter
monetary policies in China, the world's second largest energy
consumer, designed to fight inflation.
[]
U.S. crude for new front-month January delivery <CLc1>
rose 58 cents to $82.56 a barrel by 0502 GMT, after the
expired December contract suffered its largest percentage
decline since the week to Aug. 13. January ICE Brent <LCOc1>
was up 60 cents at $84.94 a barrel.
The actual share of fundamentals is still only about 50
percent, with financials still playing a big part in oil price
movements, Fredreic Lasserre, global research head for
commodities at Societe Generale, told Reuters in Singapore.
Commodities remain a good hedge against long-term
inflation, Lasserre said.
The U.S. dollar index fell below major
support around 78.27-37 to 78.14, down 0.5 percent on the day,
on Ireland's rescue deal. A weaker dollar makes oil cheaper
for holders of other currencies.
The market also shrugged off the impact of tightening
monetary policies in China after the country raised bank
reserve requirements and Hong Kong imposed measures aimed at
curbing rising property prices. []
"They want to cool the market which is good for the
economy," said Ken Hasegawa, commodities derivatives sales
manager at Newedge Japan.
"It's a strategy to prevent inflation. They really want to
grow gradually."
PROFIT-TAKING
An improving supply-demand situation in the U.S., as the
economy of the world's largest energy consumer gradually picks
up, will also support oil prices, Hasegawa said.
"U.S. inventories are getting lower, especially for
gasoline and distillates," he said, adding that they had
fallen below last year's levels.
Societe Generale's Lasserre said there was still a "slight
surplus in the market now".
He expects to see inventories down to 55 days and the
market to be in backwardation by the third quarter next year.
However, Newedge's Hasegawa remained concerned that oil
could fall below $80 on profit-taking at the end of the year.
"I'm looking at whether long-position holders will really
liquidate their positions towards the end of the year."
Money managers cut net long crude oil positions on the New
York Mercantile Exchange from record high levels in the week
through Nov. 16, the Commodity Futures Trading Commission said
on Friday. []
(Additional reporting by Luke Pachymuthu; Editing by Clarence
Fernandez)
