Oil rebounds above $ 58; US data, OPEC in focus

By Staff
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VIENNA, Mar 14 (Reuters) Oil rebounded above a barrel on Wednesday after a dollar slide the previous day driven by U.S. stock market losses.

Investors are watching for U.S. oil data later on Wednesday expected to show a rise in crude oil stocks in the world's top consumer but a drop in gasoline.

OPEC ministers are in Vienna for a meeting on Thursday that will set output. Officials have said the group that pumps over a third of the world's oil is likely to hold production steady after making cuts at its previous two meetings.

U.S. crude was up 33 cents at .26 a barrel by 0925 GMT, after hitting a three-week low on Tuesday as worries over the U.S.

subprime mortgage sector hit global equities markets.

London Brent crude was up 30 cents at .20.

Analysts noted oil has so far proved relatively resilient.

''We are mindful that oil had every opportunity to collapse in January, yet recovered. As such, we believe the odds of an overthrow of the March peaks near .40 are high,'' said technical analysts at Barclays Capital.

Analysts anticipate Wednesday's U.S. oil data will show a 2.4 million barrels decline in weekly gasoline stocks ahead of peak summer demand. Crude stocks are seen rising by 1.6 million barrels, according to a Reuters poll.

''Today's data will be key after Tuesday's fall,'' said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures Ltd. in Tokyo. ''If the falls in fuel stocks were only half as much as expected, oil's next target would be .'' The market has fallen nearly in the past four sessions, after hitting last week, with Tuesday's slide coming as a sell-off in the U.S. stock market added to worries over the economic health of the world's top oil consumer.

Most other commodities also fell and Asian shares slumped on Wednesday.

Traders are also looking ahead to OPEC's meeting on Thursday in Vienna, where ministers are expected to leave existing supply curbs of 1.7 million barrels per day (bpd) in place.

''An output cut is out of the question,'' Emori said.

On Tuesday the International Energy Agency, adviser to 26 industrialised nations, issued a report saying the world would need extra oil from OPEC in the coming months. Oil stocks in OECD nations may be headed for their biggest fall in more than 10 years as OPEC production cuts bite, the IEA said.

REUTERS PV SSC1514

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