* Oil recovers, still down over 7 percent in July
* US inventory data expected to show fall in crude stocks
* Awaits EIA monthly report
(Updates prices, recasts)
By Joe Brock
LONDON, July 7 (Reuters) - Oil rose toward $65 a barrel on
Tuesday after a four-day losing streak and as U.S. crude oil
inventories were expected to fall for the fifth week in a row.
U.S. crude futures <CLc1> rose 39 cents to $64.44 a barrel
by 1201 GMT, having settled down 4 percent on Monday at $64.05,
its lowest settlement in more than a month.
London Brent crude <LCOc1> was up 35 cents at $64.40.
Oil prices have fallen seven percent in July and Mike
Wittner, Societe Generale's global head of oil research, said
some investors were trying to take advantage of the sharp falls
in the previous four sessions.
"It is not going to continue lower in a straight line. We
will see more of bargain hunting by investors," Wittner said.
He said the market focus would shift to a spate of
statistics to be released throughout this week and next,
including American Petroleum Institute (API), U.S. Energy
Information Administration and the International Energy Agency.
Industry group API will release its weekly crude and
products stocks data at 2030 GMT.
Analysts polled by Reuters forecast data will show a 2.2
million barrel fall in crude oil inventories, making a fall for
the fifth week.
Gasoline and middle distillate inventories were forecast for
increases of 800,000 barrels and 1.7 million barrels,
respectively. []
The EIA will release its monthly report later on Tuesday and
weekly statistics on Wednesday.
In June, it raised its forecast for 2009 world demand by
10,000 barrels per day (bpd) to 83.68 million bpd, the first
time since September that it had increased the demand estimate
in its rolling monthly forecast.
OIL PRICE REVISION
Oil prices have risen from below $33 levels in December last
year due to some signs of global economic recovery.
Bank of America-Merrill Lynch said earlier on Tuesday it had
raised its oil price forecasts for 2009 to $59 a barrel for
Brent and to $58.50 for U.S. crude, up from forecasts of $52 for
both benchmarks. []
"Our price revisions come on the back of a weaker U.S.
dollar, a significant improvement in liquidity conditions for
the global economy, and a slightly tighter-than-expected global
oil market balance," the bank said.
Support also continued to come from Nigeria, where militants
have launched at least four attacks against oil installations in
the past 10 days, helping to underpin prices on Tuesday.
The main militant group said on Monday it had sabotaged a
Chevron <CVX.N> oil facility and seized a chemical tanker and
six crew members. []
Royal Dutch Shell <RDSa.L> said there was no impact on its
Nigerian oil production from an attack to its oil field on
Sunday. []
(Additional reporting by Ikuko Kao and editing by Keiron
Henderson)
