BUZZ-Slowing of oil squeeze sees interest return to airlines

** Slowing of oil squeeze fueling interest again in long airlines trade as a proxy on lower spot prices

** WTI struggling to hold uptrend that began in March despite second week of draws in crude stocks Chart: http://link.reuters.com/sun74w

** Short positions back at January levels as bears squeezed out, though longs still elevated. Chart: http://link.reuters.com/tun74w

** Two traders note value in Easyjet (Other OTC: EJTTF - news) if oil heads back down: stock at the bottom of its uptrend after falling 8.5 pct post numbers

** IAG also cited as possible long: trader notes share price has diverged from rising EPS over the last month. Chart: http://link.reuters.com/cyn74w

** Both stocks' valuations undemanding v peer group. Chart: http://link.reuters.com/gyn74w

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)