* U.S. inventory report shows crude stocks down, gasoline
stocks up in July 4 week, distillates at 25-year high
* Weak U.S. dollar, equities support
* Nigerian militants agree 60-day ceasefire
(Recasts, changes byline and dateline from previous LONDON)
By Rebekah Kebede
NEW YORK, July 15 (Reuters) - Oil rose more than 3 percent
to over $61 a barrel on Wednesday, supported by falling U.S.
crude oil inventories and economic optimism following positive
U.S. data.
U.S. crude <CLc1> rose $2.19 to $61.71 a barrel by 1:21
p.m. EDT (1721 GMT), while Brent crude <LCOc1> gained $2.63 to
$63.49 a barrel.
Crude stocks in the world's top oil consumer fell by a
greater-than-expected 2.8 million barrels, to 344.5 million
barrels, the U.S. Energy Information Administration said.
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"The larger-than-expected crude stock draw of 2.8 million
barrels is attracting much attention so far in forcing values
to fresh highs for the day," said Jim Ritterbusch, president
of Ritterbusch & Associates in Galena, Illinois.
Support also came as positive economic data spurred
investors out of the U.S. dollar and into equities and
commodities. The Reuters-Jeffereies CRB Index <.CRB> rose more
than 1 percent in early afternoon activity.
The U.S. dollar fell to a one-month low against a basket of
six major currencies, while the euro rose 1 percent on the day
versus the greenback. [/USD]
Global stocks gained after upbeat results from Intel
<INTC.O>, but doubts lingered about the strength of any rebound
and the implications for energy demand.
FUEL DEMAND SLUGGISH
Despite the draw in crude stockpiles, the EIA data showed a
build in gasoline stockpiles and a week-on-week decline in the
week to July 10, which included the July 4 holiday when the
summer driving season typically peaks.
Gasoline stocks climbed 1.5 million barrels last week to
214.6 million barrels, beating analyst forecasts, despite the
Fourth of July holiday weekend.
"We should be focusing on gasoline and gasoline inventories
increased going into the 4th of July holiday," said Phil Flynn,
analyst, PFGBest Research in Chicago.
"Obviously that raises questions about the demand side of
the equation, (and) evidence seems to be suggesting that it was
not very good," Flynn said.
Weak demand for fuel due to the ailing economy lifted
stockpiles of refined products, with distillate stocks reaching
a 25-year high last week, according to the EIA data.
Nigeria's main militant group have agreed to a 60-day
ceasefire, but traders had yet to be convinced it would
translate into a more stable environment for oil production.
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Doubts over the sustainability of any truce were amplified
after Henry Okah, a Nigerian militant leader released by the
government on Monday, told Reuters he believed other militants
would keep attacking the country's oil industry.
[]
(Additional reporting by Robert Gibbons in New York and Joe
Brock and Alex Lawler in London; Editing by Christian
Wiessner)
