* Bullish Chinese output data buoys sentiment
* US market closed; EIA inventory data delayed to Thursday
* OPEC monthly oil report due later
By Jennifer Tan
SINGAPORE, Nov 11 (Reuters) - Oil rose above $79 a barrel
on Wednesday, after dipping a day earlier, as signs of robust
economic growth in China offset mildly bearish U.S. industry
data showing surprise builds in crude and distillate
stockpiles.
The dollar slipped but stayed above recent 15-month lows
against a basket of currencies as investors paused for breath
after a spike in the euro and higher-yielders, while Japan's
benchmark Nikkei <> edged up 0.2 percent as the yen's
advance against the dollar limited gains. []
Data released on Wednesday showed that industrial output
growth in the world's No. 2 oil user spurted to a 19-month high
in the year to October, underlining the Chinese economy's brisk
recovery from the global downturn in response to massive fiscal
and monetary stimulus.
The U.S. market is closed on Wednesday for a national
holiday, so traders will scour inventory data by the Energy
Information Administration, due on Thursday, for further clues
on the outlook for demand from the world's top energy consumer.
A monthly report by producer group OPEC, due later in the
day, could also offer clues on the outlook for global oil
demand.
U.S crude for December delivery <CLc1> rose 11 cents to
$79.16 a barrel by 0220 GMT, after settling down 38 cents at
$79.05 on Tuesday. London Brent crude <LCOc1> was up 11 cents
to $77.61.
Oil prices have risen about 77 percent so far this year,
but are still 46 percent off their high of more than $147 a
barrel struck in July last year.
"The Chinese economic data will be a significant near-term
boost for the market. The data provides evidence of the
strength of the Chinese economy," said David Moore, commodity
strategist with the Commonwealth Bank of Australia.
"Oil's underlying tone remains firm. We do not think that
the fundamentals justify prices at such levels, given high
inventories and with demand still weak, but you can't argue
with the market."
The pace of demand recovery in the United States remains
patchy. U.S. crude stocks rose 1.2 million barrels last week,
higher than analyst projections for a 600,000-barrel build, as
imports rebounded, weekly inventory data from the American
Petroleum Institute (API) showed on Tuesday. [] []
Inventories of distillates, which include heating oil and
diesel, posted a surprise gain of 640,000 barrels, compared
with analyst forecasts of a fall of 700,000 barrels due to
colder weather in the northeastern United States.
Oil fell on Tuesday after Ida, the first real storm threat
of the 2009 season, was downgraded from a hurricane on Monday,
and as companies began restoring their Gulf of Mexico
operations.
But the U.S. Minerals Management Service said more than 43
percent of oil output and nearly 28 percent of natural gas
output remained shut late on Tuesday. []
(Editing by Clarence Fernandez)
