* Better-than-expected corporate earnings support

  * U.S. crude closed at backwardation for the first time in 3 yrs

  * API at 2030 GMT U.S. October consumer confidence at 1400 GMT (Updates prices, adds comments)

  By Ikuko Kurahone

  LONDON, Oct 25 (Reuters) - U.S. crude futures rose for a third straight day to hit a fresh three-month high on Tuesday due to low oil inventories, while Brent dipped below $111 due to concerns over Europe's economy.

  Brent crude futures < LCOc1> fell 36 cents to $111.09 a barrel by 1322 GMT as it flipped between being barely positive and barely negative.

  U.S. crude < CLc1> was up $2.30 at $93.57 after hitting $94.65, the highest intraday price since early August.

  U.S. crude futures outpaced the rest of the oil futures complex . U.S. crude has risen more than 10 percent over the past three trading sessions, compared with a gain of about 1.5 percent in Brent crude prices.

  On Monday, the U.S. prompt December 2011 contract rose above the January contract, flipping into a price structure known as backwardation, which typically reflects tight markets.

  It was the first time since October 2008 that the spread between the prompt and second-month contracts closed at backwardation, according to Reuters data. < CL-1=R>

  " The U.S. crude price is responding to a swift reduction in U.S. crude oil stocks in past few weeks, which have plunged by over 10 percent since the end of May. The previous substantial inventory overhang has now been fully depleted," said Carsten Fritsch, a commodity analyst at Commerzbank in Frankfurt.

  " Stocks at Cushing are 25 percent below the record level of the spring," he added.

  Cushing in Oklahoma is the delivery point of U.S. crude.

  The discount on U.S. crude against Brent narrowed to as little as $16.77 a barrel, the tightest since early July. < CL-LCO1=R>

  Oil inventories have remained below year-earlier levels in the United States and Europe.

  The market was closely watching U.S. supplies for direction as weekly inventory data from the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) will be released on Tuesday and Wednesday respectively.

  Analysts forecast an increase of 2 million barrels in U.S. crude inventories, with refined products falling.

 

 

  Economic concerns continued pressure on Brent crude as EU leaders meet to adopt a plan to reduce Greece's debt burden.

  " The real economy in Europe is not that strong," said Masaki Suematsu, a broker at Newedge in Tokyo.

  But the fall in Brent crude prices was limited by relatively strong corporate earnings. Oil and gas firm BG Group and Deutsche Bank < DBKGn.DE> beat forecasts, helping underpin European shares.

  Despite concerns over the euro zone debt crisis and widespread expectations of an economic slowdown, Brent crude oil prices are forecast to stay well above $100 per barrel, a Reuters poll showed on Tuesday.

  A Reuters poll of 35 analysts showed Brent crude averaging $106.80 per barrel next year and $108.60 in 2013 as demand for fuel from China and emerging economies keeps the global oil market tight.

  U.S. crude is forecast to average $92.00 a barrel in 2012 and $99.50 in 2013. (Reporting by Seng Li Pen Singapore and Ikuko Kurahone in London, editing by Jane Baird)