Investor hopes for oil demand in China support
Iraqi northern export halt, OPEC cuts also underpin market
US crude stockpiles expected to fall in weekly reports
Coming up API report, 2030 GMT

April 25 Reuters Oil edged higher on Tuesday, on track for a third day of gains, supported by investor optimism that holiday travel in China would boost fuel demand and by expectations U.S. inventories would show a drop in crude stocks.

Bookings in China for trips abroad during the upcoming May Day holiday point to a continued recovery in travel to Asian countries. U.S. crude inventories are expected to fall by 1.7 million barrels in weekly supply reports.

Brent crude rose 10 cents to 82.83 a barrel at 0805 GMT, while U.S. West Texas Intermediate crude gained 15 cents to 78.91. Both contracts rose over 1 on Monday.

Investors expressed optimism that Chinese holiday travel would boost fuel demand in the world39;s largest oil importer, said Leon Li, an analyst at CMC Markets.

Involuntary and planned supply cuts also lent support. Iraq39;s northern oil exports have shown few concrete signs of an imminent restart after a month of standstill, and members of the OPEC producer group are starting a voluntary cut in May.

Global oil demand, helped by the beginning of the U.S. driving season and Chinese economic revival, will pick up and scale new peaks, said Tamas Varga of oil broker PVM. OPEC production will remain subdued and could even deteriorate further.

Still, investors…