* Oil gains for 8th day in last nine on risk flows
* Rally in Asia stocks builds; eyes on earnings
* NYMEX crude speculators cut net long positions
(Releads, updates prices, adds Asian shares performance)
By Fayen Wong
PERTH, July 27 (Reuters) - Oil rose for a third session on
Monday, riding the tailcoat of rallying Asian stocks toward $69
a barrel as investors read recent positive corporate earnings
as a further sign of an economic recovery that will stoke fuel
use.
Asian stocks rose for the ninth day in 10 on Monday, with
investors still focused on upward momentum in corporate
earnings and moving money into riskier, higher-yielding assets.
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U.S. crude for September delivery <CLc1>, which has risen
in eight of the last nine trading days, climbed 63 cents to
$68.68 a barrel by 0553 GMT, the highest since early this
month.
London Brent crude <LCOc1> rose 77 cents to $71.09.
"Oil's rally has again been supported by external factors,
such as positive macroeconomic data and rally in the equities
markets, and those factors, along with the U.S. dollar, should
again set the tone for oil this week," said Toby Hassall, a
commodities analyst at Commodities Warrants Australia.
Rosy macroeconomic data and upbeat earnings results have
buoyed hopes of a rebound in the economy, prompting investors
to bet that fuel demand will recover later this year. Oil
prices have climbed about $10 since a mid-month low.
But Wall Street may take a breather this week after an
earnings driven rally lifted the major U.S. stock indices to
their highest levels in months. []
In addition to a steady flow of companies results this
week, including Exxon Mobil Corp <XOM.N> and Honda Motor Co
<7267.T> and Mitsubishi UFJ Financial <8316.T>, analysts said
investors will also look out for U.S. domestic gross product
data for the second quarter to see if a second-half recovery is
on track.
Some analysts said a faster rebound in Asian economies, led
by China, would offer further support for oil prices in coming
months.
"The central factor in determining the speed of adjustment
in oil products will be the pace of recovery in Asia," Barclays
Capital said in a research note.
"The sensitivity of oil demand to economic growth is
greater in Asia than in other regions, and the tendency for
economic growth to surprise consensus estimates on the upside
also appears to be greater in Asia."
Separately, on the geopolitical front, more than 50
Nigerians were killed on Sunday in clashes between security
forces and militants in the northeastern city of Bauchi,
residents and hospital sources said. []
Despite the price rally moving into its third week,
speculators have pared back their bullish bets in the crude oil
market, cutting net long positions to a scant 2,218 lots in the
week to July 21, regulatory data showed Friday.
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(Reporting by Fayen Wong)
