* IEA: oil to exceed $100 in 2015
* The euro slips against the dollar, yen
* Technicals show oil may retrace to $85.65 []
* Coming Up: U.S. API oil inventories; 2130 GMT
(Updates throughout, changes dateline from SINGAPORE)
By Ikuko Kurahone
LONDON, Nov 9 (Reuters) - Oil resumed gains above $87 on
Monday, bouncing from the earlier losses, as the International
Energy Agency said oil prices would exceed $100 a barrel in the
next five years.
By 1037 GMT, U.S. crude oil futures <CLc1> rose 25 cents to
$87.30 a barrel, having fallen to as low as $86.44. ICE Brent
<LCOc1> was trading 21 cents higher at $88.67.
U.S. crude hit a two-year high of $87.49 on Monday.
Oil reversed course following the release of the IEA's
long-term energy outlook, in which the Paris-based agency said
oil prices might exceed $100 a barrel in 2015 and $200 in 2035.
[]
Analysts said the $100 mark provided a clear price target
for investors, but return on investments might not be dramatic.
"That $100 per barrel is four-five years away. It is not
much support to oil prices," Olivier Jakob with Petromatrix
said.
"If you take into account the contango structure and so
forth, it does not give you much return."
The IEA also cut its 2035 oil demand outlook by 6 million
barrels per day (bpd) to 99 million bpd from its estimate a year
earlier.
Analysts also pointed out gains might be limited by a
stronger dollar against the euro due to renewed concern about
debt in Europe and an expected rise in U.S. oil inventories.
"The top end of prices will be weighed by renewed concerns
over sovereign debts in Europe, while crude prices would move
with a solid floor due to money inflows into risky assets
following the further easing (in the United States)," analysts
with Mizuho Corporate Bank in Tokyo said in a research note.
"Ahead of the (U.S. government) oil inventory data tomorrow narrow range price movements is likely today."
Ireland is the latest country to rattle the euro, with Irish
borrowing costs extending a month-long climb on worries about a
political impasse in Dublin ahead of a budget vote.
The euro extended losses against the dollar and the Japanese
yen <EUR=>. []
Wider commodities markets rallied due to risk appetite on
the back of U.S. Federal Reserve's decision last week to inject
$600 billion to spur a flagging recovery, referred as the QE2,
and the market anticipation prior to the decision.
Gold added to a record breaking run, hitting a new high
above $1,400 an ounce as investors sought safe havens in the
face of a number of uncertainties including euro zone debt
worries and amid this week's G20 leadership summit in Seoul.
[]
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INVENTORIES
U.S. crude inventories probably increased by 1.4 million
barrels in the week to Nov. 5 as imports rebounded, a Reuters
poll of analysts showed on Monday. []
The American Petroleum Institute will issue its oil stocks
report on Tuesday at 2130 GMT, followed by the U.S. Energy
Information Administration's (EIA) government data on Wednesday.
[]
The analysts in the poll forecast a drawdown of 1.8 million
barrels for middle distillate inventories, which includes
heating oil and diesel, down for the seventh consecutive week,
while gasoline stocks fell 1 million barrels.
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The U.S. EIA will release its outlook for 2011 oil
consumption in the United States and the world later in the day.
Analysts expect the EIA to increase its forecast for next
year.
(Reporting by Alejandro Barbajosa in Singapore and Ikuko
Kurahone in London; Editing by Alison Birrane)
