* U.S. crude, gasoline stocks fall by far more than expected
* U.S. distillate stocks rise by 500,000 barrels
* For a technical view, click: []
(Updates prices, recasts, adds EIA data)
By David Sheppard
LONDON, June 3 (Reuters) - Oil prices rose on Thursday to near $74 a barrel after U.S. government data showed crude and gasoline stocks in the world's largest energy consumer had fallen by far more than expected last week.
U.S. crude prices for July <CLc1> rose as high as $74.40 before easing back to $73.31 a barrel, up 45 cents, by 1525 GMT. ICE Brent <LCOc1> rose 82 cents to $74.57.
The U.S. Energy Information Administration said crude oil inventories fell by 1.9 million barrels last week, a far larger drop than the 100,000 barrel dip predicted by market analysts.
Gasoline inventories were also down sharply, sliding 2.6 million barrels. The market had expected a 500,000 barrel fall.
"The draws in gasoline and crude really stand out right away, which helps boost that market right back up above $73 a barrel," Tradition Energy analyst Gene McGillian said.
"The real question will come here whether we can get through that resistance level of $74.50-$75 a barrel."
Demand for oil products in the United States over the last four weeks has been more than 8 percent higher than the same time a year ago.
Prices were also supported by firm equity markets, though lacklustre retail sales data in the United States offset some of the positive signs on the employment front. []
The U.S. dollar firmed against the euro, sapping some of oil's gains. A strong greenback makes dollar-priced commodities more expensive for holders of other currencies. [] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a correlation graphic of oil, equities and the euro: http://graphics.thomsonreuters.com/gfx/AB_20100306145731.jpg ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
VOLATILE WEEK
Concern about a slowdown in China's economy weighed on oil prices earlier this week, hitting sentiment already battered by Europe's debt crisis.
Oil prices have traded in a range between $71.64 and $75.33 since Monday, torn between evidence that the world's biggest oil-consuming nations are posting steady growth in demand and speculation that consumption will be hurt by a stagnant European economy.
"Crude demand will ease slightly ahead of the seasonal pick-up in the second half of this year, but we remain confident it will still grow strongly in 2010," VTB Capital analyst Andrey Kryuchenkov said.
(Additional reporting by the New York Energy Desk and Alejandro Barbajosa in Singapore; editing by Jane Baird)
