* Global stock markets ease from 10-month highs
* Eyes on U.S. oil inventories for direction
* Analysts raise oil price consensus for 5th month
(Update prices)
By Ikuko Kurahone
LONDON, Aug 25 (Reuters) - Oil bounced above $74 on Tuesday,
nearly recouping earlier losses in line with equity markets
ahead of a spate of U.S. economics data.
U.S. crude <CLc1> was 4 cents up at $74.41 a barrel by 1211
GMT, having fallen to as low as $73.41 earlier.
On Monday, it hit $74.81, the highest intraday prices since
mid-October.
Brent crude <LCOc1> was down 57 cents at $73.69, trimming
its earlier loss by nearly $1.
"The drop is probably due to the decline in equities markets
today," said Tetsu Emori, a fund manager at Tokyo-based Astmax
Co Ltd.
European shares turned flat after falling earlier in the
day, with Wall Street set to open higher. [] []
Commodities markets have closely tracked equities indexes in
recent months. Dealers view stocks as an indicator of economic
performance, which would boost or reduce energy and commodities
demand.
Falls in Asian shares pressured oil prices earlier in the
day.
The Shanghai stock index <> plunged more than 5 percent
after Premier Wen Jiabao said Beijing would keep its monetary
policy loose as the economy faces new difficulties, including
trouble boosting domestic consumption.
On a brighter note, official data showed Germany, Europe's
biggest economy, had exited recession in the second quarter,
growing by 0.3 percent. [].
A Reuters survey of more than 30 analysts showed oil prices
would average above $73 next year.
The analysts raised their consensus forecast for the fifth
straight month, on expectations the strength of economic
improvement and higher fuel demand would spur a sustained oil
price rally. []
Investors will watch for U.S. housing, consumer confidence
and retail sales data due later on Tuesday for pointers on the
health of the world's biggest economy.
The oil market's focus will also shift to weekly U.S. oil
inventory data.
Analysts in a Reuters survey forecast a 900,000 barrel drop
in U.S. crude inventories. Gasoline inventories were forecast to
fall, while middle distillate stocks, including heating oil,
were seen increasing.
Last week, U.S. crude stocks posted a big fall, as refiners
boosted operations and imports dropped sharply to hit their
lowest level in 11 months, U.S. Energy Information
Administration data showed. []
Data from the American Petroleum Institute will be released
at 2030 GMT on Tuesday, and the equivalent U.S. government data
is due out on Wednesday.
(Additional reporting by Ramthan Hussain in Singapore; editing
by Sue Thomas)
