* U.S. crude stocks down, gasoline up in July 4 week
* Distillates at 25-year high
* Weak U.S. dollar, equities support
* Nigerian militants agree 60-day ceasefire
(Updates prices)
By Rebekah Kebede
NEW YORK, July 15 (Reuters) - Oil prices rose more than 3
percent to above $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 $2.05 to $61.57 a barrel by 2:31
p.m. EDT (1721 GMT), after reaching a high of $61.98 a barrel.
London Brent crude <LCOc1> gained $2.22 to $63.08 a barrel.
Crude stocks in the United States, the world's top oil
consumer, fell last week by a greater-than-expected 2.8 million
barrels to 344.5 million barrels, the U.S. Energy Information
Administration said. []
"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> of 19
commodities rose more than 1 percent in early afternoon.
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 technology
bellwether Intel Corp <INTC.O>, but doubts lingered about the
strength of any rebound and the implications for energy
demand.
FUEL DEMAND SLUGGISH
Despite the decline in crude stockpiles, the EIA data
showed an increase in gasoline stockpiles in the week to July
10, which included the July 4 Independence Day holiday, when
the summer driving season typically peaks.
Gasoline stocks climbed 1.5 million barrels to 214.6
million barrels, surpassing analysts' 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, an analyst at 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 agreed to a 60-day ceasefire,
but traders had yet to be convinced it would translate into a
more stable environment for oil production. []
Doubts over the sustainability of any truce in Nigeria were
amplified after Henry Okah, a 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 Walter Bagley)
