* WTI up more than $1 at $72.40/bbl supported by equity
rise
* Big API crude stocks draw, apparent OPEC optimism buoys
* Longer term worries after US govt demand/supply forecast
(Updates prices, adds details and background)
By Nick Trevethan
SINGAPORE, Sept 10 (Reuters) - NYMEX crude rallied more
than $1 to $72.40 a barrel on Thursday, up for a fourth day
running, lifted by a soft dollar, gains in equities markets and
soothing words from OPEC.
Asian stock markets pushed higher and the euro edged up
versus the dollar. On the fundamental side, a fall in U.S.
crude stocks five times greater than analyst forecasts on
Wednesday and positive comments on prices and the economy by
Saudi Oil Minister Ali al-Naimi also supported the price.
OPEC left output unchanged, as expected, with Naimi saying
prices were being driven by economic recovery, and that high
levels of inventory had become irrelevant to the market.
[]
"The lack of more aggressive action reflected a belief that
demand will be sufficient in pulling down the overhang in the
market," David Kirsch, director of market intelligence services
at PFC Energy in Washington, said.
"It's a shift from previous OPEC policy in being more
proactive against their downside risks and obviously the state
of the economy played a part in this decision."
NYMEX crude for October delivery <CLc1> stood at $72.34 a
barrel by 0630 GMT, up $1.03 from Wednesday's settlement.
London Brent crude <LCOc1> rose 80 cents to $70.63 a barrel.
Traders noted rising interest in front-month WTI versus
longer dated futures in the past month or so and a narrowing in
the contango, or discount for near-dated oil.
"The one lesson we all learnt from the great price crash is
that all markets are correlated. The gains we are seeing in oil
right now are driven by equities as much as anything and people
are buying prompt crude to ride the wave we are seeing in
stocks," a Sydney-based energy trader said.
For a graphic showing WTI crude versus equities, click:
http://graphics.thomsonreuters.com/099/CMD_BRNT20909.gif
Asian share markets were underpinned by a 0.5 percent gain
in the Dow Jones industrial average <> and the Federal
Reserve's Beige Book survey, which showed the U.S. economy was
stabilising, although many key sectors remained weak.
That buoyed sentiment in Japan, where the Nikkei index
<> gained 1.4 percent even though machinery orders' data
pointed to weak capital spending in the world's No. 2 economy.
Also bullish was a big fall in U.S. crude stocks, with the
American Petroleum Institute reporting a 7.2 million barrels
drawdown in the week to Sept. 4, far more than the 1.5 million
barrels forecast in a Reuters poll. [] []
However, this was partly offset by a 3.3-million-barrel
jump in distillate stocks, far exceeding the forecast for an
increase of 800,000 barrels, while gasoline stocks rose 571,000
barrels against the forecast for a 1.3 million barrel drawdown.
More inventory data is expected on Thursday with the Energy
Information Administration's report at 1500 GMT.
On Wednesday the government body predicted global oil
demand through next year would be weaker than previously
forecast while supplies will be higher.
The EIA cut its forecast for world oil demand growth in
2010 by 30,000 barrels per day and raised its forecast for
global oil production growth by 150,000 bpd. []
(Editing by Clarence Fernandez)
