* Oil adds to 2 pct rally, stretching beyond $51 a barrel
* Economic optimism aided by Japan data; flu risk worsens
(Updates prices, adds world stocks at 4-month peak)
By Jonathan Leff
SINGAPORE, April 30 (Reuters) - Oil rose well above $51 a
barrel on Thursday, extending the previous day's gains as
traders focused on improving economic data and draining fuel
stocks rather than the worsening swine flu outbreak.
A surprise 4.7 million barrel decline in U.S. gasoline
stocks ahead of the driving season and stock market gains aided
oil's 2 percent rise on Wednesday, although prices remained
stuck in the $45-$55 range that has bound them for the past six
weeks.
U.S. light, sweet crude <CLc1> for June delivery rose 56
cents to $51.53 a barrel by 0524 GMT. Brent crude <LCOc1>
gained 41 cents to $51.19.
Prices are on track to gain 3 percent this month, their
third monthly rise, but the rebound from February's $33 low has
stalled as traders await further evidence that the economy's
decline is easing, offering an improved outlook for oil demand.
"I think there's going to be a bit more of tracking broadly
sideways as the market tries to interpret the signals from the
economic data and whether we're at the trough in the economic
cycle," said Ben Westmore, commodities analyst at National
Australia Bank.
And while Wednesday's U.S. government data showed a
surprise decline in nationwide gasoline inventories that
eliminated a supply surplus heading into peak driving season,
he noted that crude stocks continue to bulge. []
The Energy Information Administration weekly report showed
a 4.1 million barrel increase in crude oil stockpiles, bringing
inventories to a new 19-year high, and a 1.8 million barrel
increase in unseasonally high distillate stocks.
News that the World Health Organization had raised its
threat level on the swine flu virus also failed to dampen the
mood as traders took a wait-and-see approach over whether it
would become a pandemic that could further cut fuel demand.
[]
"The market is waiting for a bit more clarification about
how bad a problem it is," said Westmore.
ECON HOPES GROW
World stocks struck a four-month peak on Thursday, powered
by gains in Asia, as investors took heart from signs of
improvement in the U.S. economy suggesting regional exporters
may need to start cranking up production. []
Traders looked past the surprisingly big 6.1 percent
contraction in the economy in the first quarter to focus on the
details of a big run-down in inventories.
Hints of future expansion were further reinforced by
comments from the U.S. Federal Reserve, which said the pace of
deterioration in the economy appeared to be slowing.
[] []
Adding to the growing glimmers of economic hope, industrial
output in hard-hit Japan rose 1.6 percent in March, the first
gain in six months, contributing to a 4 percent gain in the
Nikkei average <>. []
A Reuters' poll forecast world oil demand would fall this
year by 1.56 million barrels per day, much more than previously
expected, as growth stalls in emerging powerhouses such as
China and consumption declines in the developed world.
[]
(Additional reporting by Maryelle Demongeot; Editing by
Michael Urquhart)
