UPDATE 1-Oil falls from two-week high; equities provide support

                                
 * U.S. crude inventories unexpectedly climb - API
                                
 * For a technical view, click: [ID:nSGE66D011]
                                
 * Coming Up: EIA U.S. oil inventory report; 1430 GMT
 (Adds technical resistance, equities correlation graphic)
                                
 By Alejandro Barbajosa
                                
 SINGAPORE, July 14 (Reuters) - Oil fell from two-week highs
around $77 on Wednesday after a 2.9 percent jump the previous
day, but still found support from equities and solid U.S.
quarterly earnings.
                                
 Asian stocks rose to a three-week high, following the sixth
straight rally for Wall Street which was led by the technology
sector after chip-maker Intel <INTC.O> results beat
expectations. [MKTS/GLOB]
                                
 U.S. August crude <CLc1> slid 29 cents to $76.86 a barrel
at 0523 GMT, just 51 cents away from Tuesday's two-week
intraday high of $77.37, but still about $10 lower than a
19-month peak above $87 in early May.
                                
 "The oil market is going to be taken for a ride to a large
degree by what happens in equity markets," said Toby Hassall,
an analyst at CWA Global Markets in Sydney.
                                
 For a graphic on oil's correlation with equities and euro:
 http://graphics.thomsonreuters.com/gfx/ABE_20101407131104.jpg
                                
 Prices erased early gains as U.S. crude faced resitance at
77.52, the 76.4 percent Fibonacci retracement level on the fall
from $79.38 to $71.48, which may force oil to correct
moderately to support at $76.50, a Reuters technicals analyst
said.
                                
 They were also under pressure from an unexpected increase
in U.S. crude inventories reported by the American Petroleum
Institute late on Tuesday. ICE Brent crude for August <LCOc1>
shed 37 cents to $76.28, but also stayed near to two-week
highs.
                                
 "Oil prices are determined to a large degree by global
economic prospects, and fuel demand is going to be a function
of global economic activity. The market will also certainly be
keeping an eye on U.S. inventory levels," Hassall said.
                                
 The API reported a surprise rise in crude stockpiles, which
like gasoline increased by 1.7 million barrels last week.
Supplies of distillate fuel including heating oil and diesel
climbed 3.2 million barrels. [API/S]
                                
 Traders will want to see if more closely watched Department
of Energy (DOE) statistics, scheduled to be published at 1430
GMT, confirm the increase. [EIA/S]
                                
 "If we see similar numbers tonight in the DOE report, that
might curb some of the bullish enthusiasm that we have seen of
late," Hassall said.
                                
 Crude stockpiles were predicted to have dropped by 1.4
million barrels in the week to July 9, a Reuters survey showed,
after tumbling 5 million barrels a week earlier because of
disruptions related to Hurricane Alex.
                                
 The International Energy Agency on Tuesday increased its
global oil demand forecast for 2010 by 80,000 barrels per day,
while at the same time predicting slower demand growth next
year. [ID:nLDE66C0PP]
                                
 The euro held firm near two-month highs on Wednesday after
Greece successfully returned to the capital markets a day
earlier. [MKTS/GLOB]
                                
 U.S. Senate Democrats on Tuesday appeared to nail down the
votes needed to approve a historic overhaul of U.S. financial
regulations and set up a final vote by the end of the week.
[ID:nN13247555]
 (Editing by Ed Lane)