* Wall Street, weak dollar to set trading tone
* OPEC monthly oil report due later
* Weekly U.S. oil stocks data due on Wednesday
(Updates prices, recasts, previous dateline SINGAPORE)
By David Sheppard
LONDON, Oct 13 (Reuters) - Oil rose for the fourth straight
session on Tuesday, edging above $73 a barrel on the back of
rising optimism about the pace of global economic recovery and
weakness in the dollar.
U.S. crude for November delivery rose 31 cents to $73.58 by
0809 GMT, after settling at a seven-week high of $73.27 on
Monday.
London Brent crude <LCOc1> gained 44 cents to $71.80.
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 from the Organization of the Petroleum
Exporting Countries, due later in the day, could also offer
further indications global oil demand has started to strengthen.
"We're revising our forecast range for oil up to $70 to $80
for the remainder of the year, from $65 to $75," said Sumisho
Sano, General Manager of Research at SCM Securities in Tokyo.
"Sentiment is moderately positive, and while fundamentals do
not necessarily justify higher prices, the trend of a weaker
dollar has been a big boost. 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. []
DOLLAR DIP
Further support for oil has come from weakness in the dollar
as investors positioned ahead of U.S. corporate earnings on
expectations strong results would bolster risk tolerance and
high-yielding currencies. []
Dollar-priced commodities like oil tend to rise when the
greenback falls as they become less expensive for holders of
alternative currencies.
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. []
Asian equities hit 14-month highs on Tuesday ahead of
results from such bellwethers as Goldman Sachs <GS.N> and
General Electric. <GE.N> European shares were moderately higher.
[]
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. []
(Additional reporting by Jennifer Tan in Singapore; editing
by Sue Thomas)
