* OPEC says no shortage of oil in global market
* NYMEX May crude contract expiration on Tuesday
* Coming up: API oil inventory data, 4:30 p.m. EDT Tuesday
(Recasts, updates prices and market activity)
By Robert Gibbons
NEW YORK, April 19 (Reuters) - U.S. crude oil rose Tuesday while Brent
seesawed as a down dollar and firmer equities provided some lift to a
market that had slumped on worries over sovereign debt and oil demand.
The expiring U.S. front-month May contract bounced early off support
above last week's low trade of $105.31 a barrel.
After slipping below $120 a barrel for the first time in two weeks,
Brent came back as the U.S. contract turned higher.
Brokers and analysts also cited support from news that Treasury
Secretary Timothy Geithner said there was "no risk" that the United States
would lose its prized AAA credit rating. []
Geithner's comments came a day after Brent and U.S. crude prices were
pressured by rating agency Standard & Poor's announcement that, although it
reaffirmed its credit rating, the outlook for the United States was lowered
from stable to negative. []
Brent crude for June <LCOc1> was unchanged at $121.61 a barrel by 1:35
p.m. (1735 GMT), after slipping as low as $119.03.
U.S. crude <CLc1> for May rose 89 cents to $108.01, having bounced off
an earlier $105.50 low.
U.S. June crude futures <CLM1> rose 96 cents to $108.65 after falling
earlier to $106.01, just above its $105.98 low from last week.
"We had a test of last week's low and the weaker dollar and U.S.
equities rebounding so far all helped crude," said Chris Dillman, analyst
at Tradition Energy in Stamford, Connecticut.
Brent's premium to the U.S. June contract <CL-LCO1=R> narrowed $1.40 to
$13.09 a barrel, in a range on Tuesday from $12.38 to $14.31.
"Hot money chased Brent on the way up, and it became a momentum trade,
more so than for WTI. If money managers decide the play is over, they are
going to run for the exits," said Timothy Evans, energy analyst at Citi
Futures Perspective in New York.
Helping ease recent fears that high prices were eroding oil demand and
threatening economic recovery, a government report showed U.S. housing
starts and permits rose more than expected in March, snapping back from the
prior month's winter depressed levels. []
Solid euro zone economic data helped the euro rebound against the
dollar after its worst day in five months. []
The dollar index <.DXY>, measuring the greenback against a basket of
currencies, weakened. A weaker dollar can lift oil prices by making
dollar-denominated crude less expensive for consumers using other
currencies and by drawing investment away from foreign exchange markets
seeking better returns.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Sovereign credit risk graphic: http://r.reuters.com/dys98r
S&P cuts U.S. credit outlook: http://r.reuters.com/cys98r
More on Middle East unrest: [] []
Libya Graphics http://link.reuters.com/neg68r
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OPEC SEES $100 OIL IN 2011
OPEC Secretary General Abdullah al-Badri, speaking at an oil and gas
trade fair in Tehran, said he did not expect oil to fall below $100 this
year, even though there was no shortage in the market. []
The Organization of the Petroleum Exporting Countries (OPEC) has so far
declined to take any formal action to cool oil's rally. Underlining that
stance on Tuesday, Iran's oil minister said any increase in output would
not bring down prices. []
SUPPLY THREATS PERSIST
Threats to Africa and Middle East oil supplies that provided much of
the lift that send prices to recent, 32-month peaks, remain in play.
Libya's conflict continued as France and Britain differed on whether to
send troops to help rebels opposed to Muammar Gaddafi. []
Yemen's police fired on demonstraters and protests continued in Syria
even as the government passed a draft law to lift emergency rule.
[] []
Medics treated hundreds in northern Nigeria after rioting broke out
objecting to President Goodluck Jonathan's election victory.
[]
U.S. INVENTORY DATA
Weekly oil inventory reports are expected to show U.S. crude oil stocks
rose last week, which would be a seventh consecutive rise in the
government's data. []
A poll of analysts by Reuters on Monday showed gasoline stocks were
expected to be lower, while distillate inventories were expected to be
little changed.
The report from industry group American Petroleum Institute is due for
release at 4:30 p.m. EDT (2030 GMT) on Tuesday. The U.S. Energy Information
Administration's weekly data will follow on Wednesday at 10:30 a.m. EDT.
(Additional reporting by Jessica Donati, Caroline Copley and Ikuko
Kurahone in London; Editing by John Picinich)
