* Wall Street, weak dollar to set trading tone
* OPEC monthly oil report due later
* US weekly crude inventory data delayed to Wednesday
By Jennifer Tan
SINGAPORE, Oct 13 (Reuters) - Oil edged below $73 a barrel
on Tuesday, after rising for three straight sessions to settle
at a seven-week high the previous day, buoyed by a weak dollar
and optimism over the pace of global economic recovery.
With earnings from a number of major U.S. firms this week,
the market is likely to take trading cues from Wall Street,
which some investors expect to continue a winning streak.
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 November delivery fell 36 cents to $72.91 by
0210 GMT, after settling 2.1 percent higher at $73.27 on
Monday. London Brent crude <LCOc1> lost 21 cents to $71.15.
"We're revising our forecast range for oil up to $70 to $80
for the remainder of the year, from $65 to $75. Sentiment is
moderately positive, and while fundamentals do not necessarily
justify higher prices, the trend of a weaker dollar has been a
big boost," said Sumisho Sano, General Manager of Research at
SCM Securities in Tokyo.
"Cold temperatures in the U.S. have also been very price
supportive."
The National Weather Service said total U.S. heating demand
will be higher than normal this week as the first seasonal wave
of cold weather hits the Northeast and Midwest. []
Further support came from a fall in the U.S. dollar as
investors positioned ahead of U.S. corporate earnings later
this week on expectations that strong results will drive risk
tolerance higher. []
Some of the biggest U.S. corporate names are scheduled to
report results this week, a reality check for whether the
seven-month rally in stocks this year has further to run.
The S&P 500 managed a sixth consecutive day of gains on
Monday to end at its closing high for the year, but the Dow and
Nasdaq ended little changed as investors opted to lock in
profits before the earnings season began in earnest. []
Traders have been looking for signs of an economic
turnaround that could support fuel demand, which has been hard
hit by the recession.
U.S. weekly oil inventory data from the American Petroleum
Institute (API) will be delayed until Wednesday due to the
Columbus Day holiday, while the Energy Information
Administration (EIA) report will be released on Thursday.
[]
A Reuters poll of analysts forecast the data will show a
700,000-barrel build in crude stocks last week, after a
surprise drawdown last week. Distillate stocks were seen
falling by 100,000 barrels while gasoline inventories were
forecast to have risen by 700,000 barrels. []
(Editing by Michael Urquhart)
