UPDATE 5-Oil falls after rise in U.S. inventories

                                
 * U.S. crude, gasoline stocks rise unexpectedly
                                
 * Distillate stocks fall less than expected
                                
 * Cold weather driven price rally pauses
                                
 
                                
 (Updates prices, adds comment)
                                
 By Chris Baldwin
                                
 LONDON, Jan 6 (Reuters) - Oil prices fell on Wednesday after
data from the United States showed an unexpected build in crude
inventories in the world's largest energy consumer, bringing a
14-percent rally over the last nine days to a halt.
                                
 U.S. crude for February delivery <CLc1> fell 61 cents to
$81.16 a barrel by 1554 GMT, after rising as high as $82.47, its
highest intra-day level since Oct. 14, 2008.
                                
 London Brent crude <LCOc1> eased 52 cents to $80.07.
                                
 U.S. crude oil stockpiles unexpectedly rose by 1.3 million
barrels last week while distillate inventories fell 300,000
barrels, against forecasts for a 1.9 million barrel decline,
U.S. Energy Information Agency data showed. [EIA/S]
                                
 Data from the American Petroleum Institute on Tuesday showed
gasoline inventories in the United States up 5.6 million barrels
in the week to Jan. 1 and heating oil stockpiles down 1.3
million barrels. [ID:nAPI000032]
                                
 "Between the API and the EIA numbers, this is not adding up
to much of an argument for crude above $82 a barrel," said
Addison Armstrong at Tradition Energy in Connecticut.
                                
 "The market has been so strong over the past 10 trading
days, some sort of pull back and consolidation is warranted."
                                
 U.S. crude oil had risen from a low of $69.57 on Dec.15.
                                
 
                                
 WINTER CHILL
                                
 Arctic winds have pushed down into the northern hemisphere,
freezing Europe and parts of Asia and boosting demand for
heating fuel in the United States some 21 percent above normal.
[ID:nN04235377]
                                
 But a dent in sentiment appeared following data from the
American Petroleum Institute (API), released  after the market's
close on Tuesday, showed U.S. distillate supplies rose 962,000
barrels last week, against an expected 1.9 million-barrel drop.
[API/S]
                                
 "The latest build in distillate stocks should provide a slap
in the face to bulls who relied on cold temperatures as a wonder
cure," said David Wech of JBC Energy.
                                
 Elsewhere icy weather descended on northern China over the
last week, bringing heavy snow and record low temperatures to
Beijing and causing cities across eastern and central parts of
the country to begin rationing power. [ID:nTOE605026]
                                
 Britain's unusually cold weather spell will likely continue
into the second half of January, the Met Office said this week.
[ID:nLDE6031DH]
                                
 Belarus on Wednesday insisted Russia should continue
billions of dollars in oil subsidies, potentially complicating
talks aimed at resolving a dispute over a pipeline that brings
10 percent of Europe's crude to market. [ID:nLDE6050OD]
 (Additional reporting by Jennifer Tan in Singapore; editing by
James Jukwey)