* Dollar slips to 15 month low
* Weekly U.S. government data on Thursday due to holiday
* Chinese demand strong
(Update price, adds floating storage)
By Ikuko Kurahone
LONDON, Nov 11 (Reuters) - Oil firmed above $79 on Wednesday
as a 15 month low in the dollar diverted investors' focus from
fundamentals, with weekly U.S. government inventory data being
delayed by one day to Thursday.
Analysts said strong Chinese oil demand and factory output
also supported the market but the gain was capped by weak demand
elsewhere and a relatively quick recovery of the U.S. oil
industry after storm disruption.
U.S crude futures <CLc1> were trading 35 cents up at $79.40
a barrel by 1057 GMT. Brent crude futures <LCOc1> rose 43 cents
to $77.93.
"Only the dollar may push oil prices around. The Chinese
manufacturing data was good, which is bullish. We are still in a
hurricane aftermath, which is bearish," Andy Sommer, senior oil
analyst with EGL Group, said.
The dollar on Wednesday hit its lowest in 15 months against
a basket of currency. <.DXY> []
The delayed release of weekly oil figures from the U.S.
Energy Information Administration (EIA) due to the Veteran's day
holiday would further direct oil traders' focus to dollar moves,
Sommer said.
EIA data is usually released on Wednesday, providing traders
with clues of oil's fundamentals in the United States, the
world's top oil consumer.
Analysts in a Reuters poll forecast the data would show a
600,000 barrel increase in U.S. crude inventories last week as
refineries have been cutting back runs as weak demand batters
margins. []
Separate data from industry group American Industry
Association later on Tuesday showed increases in crude, gasoline
and heating oil inventories. []
In Europe, crude oil inventories rose in October as refiners
reduced operation rates to match falling demand. []
Oil products, mostly heating oil, for which storage cannot
found on land, are floating in ships at sea. The volume is now
about 90 million barrels, said ICAP shippin brokers, more than
the world's daily oil consumption. []
A monthly report by producer group OPEC, due later in the
day, could also offer clues on the outlook for global oil
demand. []
Oil and natural gas companies operating in the Gulf of
Mexico began returning workers evacuated ahead of Tropical Storm
Ida and restoring shuttered output and ports. []
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.
While oil demand in many developed countries is seen falling
this year, China showed robust demand growth. Its October crude
oil imports and refinery runs rose to near record highs while
its industry output growth surged to a 19 month high.
[]
Oil producer group OPEC is unlikely to change the current
output policy significantly when it meets next month, sticking
with the existing output curbs, Qatar's oil minister Abdullar
Al-Attiyah said. []
(Additional reporting by Jennifer Tan in Singapore; Editing by
Keiron Henderson)
