* OPEC raises 2010 demand outlook
* Dollar slumps to 14-month low
* Oil rises for fourth day on colder U.S. weather
(Adds detail throughout.)
By Joshua Schneyer
NEW YORK, Oct 13 (Reuters) - Crude oil rose to a seven-week
high above $74 a barrel on Tuesday after OPEC raised its 2010
demand forecast and the dollar weakened, boosting demand for
commodities.
The Organization of the Petroleum Exporting Countries
forecast a recovering world economy would boost world crude
demand by 700,000 barrels per day next year, to 84.93 million
bpd. []
In its monthly outlook, OPEC raised its 2010 global demand
forecast by 200,000 barrels a day, after the U.S. Energy
Information Administration and the Paris-based International
Energy Agency each raised their 2010 demand forecasts last
week.
"The world economy now appears to be entering into a new
phase, moving from a period of containing the crisis to one of
economic recovery," the group said in its monthly market
report.
U.S. crude <CLc1> rose 88 cents to $74.15 by 2:36 p.m. EDT
(1836 GMT), having earlier reached a seven-week high of $74.47
a barrel. Oil prices have surged by 65 percent this year.
London Brent crude <LCOc1> gained $1.05 to $72.41.
The U.S. dollar touched a 14-month low against a basket of
other currencies, which also helped gold rally to a fresh
record high. [] Dollar-priced commodities such as oil and
gold tend to rise when the greenback falls as they become
cheaper for holders of other currencies.
In its fourth consecutive day of gains, oil failed to break
a year-high of $75 a barrel, as investors remained wary of the
pace of a U.S. economic rebound.
U.S. equities mostly fell after an economic bellwether,
consumer goods giant Johnson & Johnson <JNJ.N>, reported
disappointing quarterly sales figures early Tuesday.
The S&P 500 index slid for the first time in seven days
<.SPX>.
Earnings are due from a number of major U.S. firms this
week, and the oil market is tracking corporate results closely
for signs of broad economic recovery.
"The weak dollar is a reason we're in positive territory
today," said Tim Evans, analyst at Citi Futures Perspective in
New York. "The crude oil market has also become obsessed with
the S&P (stock) index."
Cold weather in the United States also helped boost oil
prices, with the National Weather Service forecasting the first
seasonal wave of cold weather in the Northeast and Midwest
would boost demand for heating oil to 43 percent above normal
levels. []
U.S. weekly oil inventory data from the American Petroleum
Institute (API) will be delayed until Wednesday due to Monday's
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. []
(Additional reporting by David Sheppard in London, Robert
Gibbons and Gene Ramos in New York and Jennifer Tan in
Singapore; Editing by Christian Wiessner)
