Oil up for 9th day, hits 1-year high on weak dollar

                                
 * US crude ticks up; may falter at $80 a barrel
                                
 * Soft fundamentals, contract expiry may weigh
                                
 By Nick Trevethan
                                
 SINGAPORE, Oct 20 (Reuters) - U.S. crude futures edged up
on Tuesday to a one-year high near $80 a barrel on a weak
dollar and firm U.S. stock market.
                                
 Strong earnings have boosted U.S. equity markets, with the
Dow industrials up another 1 percent on Monday, beating down
the dollar to a fresh 14-month low to make a range of
commodities more appealing for non-dollar buyers.
                                
 Apple became the latest company to report solid quarterly
numbers, after the close of New York markets. [.N]
                                
 U.S. crude for November delivery <CLc1> rose 34 cents to
$79.95 a barrel by 0225 GMT, its highest since Oct. 14 last
year. London Brent crude <LCOc1> rose 36 cents to $78.13 a
barrel.
                                
 The nine straight days of gains have lifted oil by 14.5
percent and equal a run seen in July, putting crude on track
for its strongest monthly performance since May, although there
are some concerns about whether the rally can continue.
                                
 "Oil broke above resistance at $75. $80 is the next target
although there is little in the way of fundamental support.
OPEC is overproducing and even though there is talk of a severe
winter, distillate stocks are at 26-year highs," MF Global
analyst Edward Meir said. "You have the November contract
expiration. That could also weigh as it gets flushed out and
drags the rest of the curve down. I'd be cautious today."
                                
 The soggy dollar trading near a 14-month low and just shy
of $1.50 versus the euro also supported as investors bet the
Federal Reserve will hold U.S. interest rates near zero. [USD/]
                                
 For a graphic showing the strengthening inverse correlation
between the two markets, click:
 http://graphics.thomsonreuters.com/109/CMD_USCRD1009.gif
                                
 U.S. weekly oil inventory data from the American Petroleum
Institute is released later in the day.
                                
 A preliminary Reuters poll of analysts forecast the data
will show a 2 million barrel build in crude stocks last week.
Distillate stocks were seen falling by 1.6 million barrels
while gasoline inventories were forecast to fall by 1.5 million
barrels. [EIA/S]
 (Editing by Michael Urquhart)