* Euro stronger, dollar slips, lifts oil
* European/U.S. cold weather boosts oil
* Coming up: API oil data, 4:30 p.m. EST Tuesday
NEW YORK, Dec 7 (Reuters) - U.S. crude oil futures prices rose sharply on Tuesday, pushing above $90 a barrel for the first time in 26 months as cold weather boosting fuel demand and the dollar's weakness kept oil lifted.
Optimism that Ireland will pass an austerity budget on Tuesday helped lift the euro against the dollar.
U.S. stock futures were boosted by a deal struck by U.S. President Barack Obama with Republicans to extend Bush-era tax breaks for two years.
Northwest and northeast Europe are expected to continue to have below normal temperatures and above normal energy demand the next several days. [ID:nDTN826]
U.S. heating demand was forecast at 16.3 percent above normal for the week to Dec. 11, according to the U.S. National Weather Service on Monday. Heating oil demand was forecast at 16.1 percent above normal. [ID:nN07DD]
Oil investors also will be anticipating weekly oil inventory reports, starting with a report from industry late on Tuesday.
U.S. crude stockpiles are expected to have fallen last week as refiners limited imports, according to a preliminary Reuters survey of analysts on Monday. [ID:nN06226217]
* On the New York Mercantile Exchange, January crude CLF1 rose $1.33, or 1.5 percent, to $90.71 a barrel at 8:53 a.m. EST (1353 GMT), trading from $88.80 to $90.76.
* Iran's OPEC governor described the world oil market as balanced, with the current price of around $90 a result of supply being in line with demand, the Oil Ministry news agency Shana reported on Tuesday. [ID:nMOS740889]
* In a separate interview published on Tuesday, Khatibi said the increase in the oil price still did not reflect the fall in value of the dollar over recent months and predicted that oil would reach $100 in the near future. [ID:nLDE6B60EC]
* German manufacturing orders rose by 1.6 percent on the month in October, despite a fall in euro zone demand. The mid-range forecast in a Reuters poll was for a 2-percent rise after a 4-percent fall in September. [ID:nLDE6351EI]
* Global equities were boosted by a compromise deal to extend expiring U.S. tax cuts, while the euro rose on optimism that Irish lawmakers will pass its toughest ever budget later in the day. [MKTS/GLOB]
* Gold hit its second consecutive record high as the dollar fell, also driven by year-end fund buying, the prospect of more U.S. monetary easing and investor nervousness over the European debt crisis. Silver hit a 30-year high for the seventh consecutive day. [GOL/]
* American Petroleum Institute oil inventory data at 4:30 p.m. EST (2130 GMT) on Tuesday.
* U.S. Energy Information Administration oil inventory data at 10:30 a.m. EST (1530 GMT) on Wednesday. 8:53 LAST NET PCT LOW HIGH CURRENT DAY AGO
CHNG CHNG VOL VOL CLc1 90.71 1.33 1.5% 88.80 90.76 62,418 354,635 CLc2 91.15 1.40 1.6% 89.19 91.17 23,990 110,497 LCOc1 92.78 1.33 1.5% 90.91 92.86 68,253 142,247 RBc1 2.3604 0.0187 0.8% 2.3300 2.3625 3,300 54,039 RBc2 2.3550 0.0227 1.0% 2.3211 2.3566 3,062 27,208 HOc1 2.5140 0.0392 1.6% 2.4657 2.5161 4,299 55,187 HOc2 2.5311 0.0400 1.6% 2.4820 2.5321 2,791 21,869 * NYMEX crude oil for January CLc1 rose $1.33 to $90.71 a barrel by 8:53 a.m. in volume of 62,418 lots. (Reporting by Robert Gibbons; Editing by Marguerita Choy)