* U.S. stocks to show rise in crude, gasoline - poll
* U.S. factory orders rose more than expected in Sept.
* Gold prices surge to new record high
* Dollar index <.DXY> rises 0.6 pct to one-month high
(Updates with analyst comment and details.)
By Joshua Schneyer
NEW YORK, Nov 3 (Reuters) - Oil rose above $79 a barrel on
Tuesday after data showed U.S. factory orders in September
expanded at a quicker pace than expected, signaling potential
for more fuel demand in the world's biggest energy consumer.
Factory orders rose 0.9 percent in September, surpassing
Wall Street analyst expectations, and factory inventories fell.
[]
"Factory orders are a positive sign. This helps the broad
sentiment that an economic recovery will eventually boost fuel
demand and send prices higher," said Gene McGillian of
Tradition Energy in Stamford, Connecticut.
Crude rose along with other commodities, led by gold which
reached a record above $1,084 an ounce earlier Tuesday. Gold
rose following Monday's International Monetary Fund sale of 200
tonnes of the precious metal to India's Central Bank, which
reassured investors the IMF was not preparing to sell large
volumes of gold on the open market. []
"Some people are viewing the rally in gold as a reason to
push crude up," said Tim Evans, energy analyst at Citi Futures
Perspective in New York.
U.S. crude for December <CLc1> rose $1.31 per barrel to
$79.44 by 1815 GMT. London Brent crude futures <LCOc1> rose
$1.54 to $78.09 a barrel.
Crude prices fell earlier in the day as the U.S. dollar
firmed to a one-month high against other currencies and
equities markets declined.
Oil traders are awaiting weekly U.S. oil inventory data.
Analysts expect that crude inventories rose by 1.5 million
barrels last week, although stocks of distillates like heating
oil and diesel fuel were expected to fall, according to a
Reuters poll. []
Inventory data is due from industry group American
Petroleum Institute late Tuesday, followed by weekly data from
the U.S. Department of Energy on Wednesday.
OPEC member Venezuela said Tuesday it saw no need for the
producer group, which pumps a third of the world's oil, to
raise crude output when its ministers meet in December.
[]
Some OPEC members have signaled they may call for OPEC to
produce more crude if global crude stocks fall and prices rise.
"We do not share the position of increasing output. We
still notice a lot of instability in the oil market,"
Venezuelan Energy Minister Rafael Ramirez told reporters at a
conference.
Crude has usually fallen this year when the dollar rises,
partly because it is priced internationally in dollars and a
stronger greenback can hurt non-U.S. demand.
"It seems as if today (oil prices) have taken the lead and
detached from being the follower of equity markets and the
dollar," McGillian said.
U.S. crude futures rose to their highest level this year
at $82 per barrel in late October, when the dollar weakened to
a 14-month low.
(Additional reporting by Christopher Johnson in London, Robert
Gibbons and Edward McAllister in New York; editing by Jim
Marshall)
