CORRECTED - NYMEX-Crude down on less-than-expected EIA drawdown

(Corrects that gasoline supplies fell, not rose)

* EIA: crude inventories fell less than forecast

* Private employment cut, thinner factory orders weigh

* Euro up against dollar as Wall Street rebounds

NEW YORK, Sept 2 (Reuters) - U.S. crude oil futures were
down in choppy trading on Wednesday as traders weighed
government data showing crude inventories fell less than
expected last week and gasoline supplies fell far more than
anticipated.

Crude futures fell sharply initially just after the data
emerged, rose, then fell back again as traders deflated the
impact of late Tuesday's industry data from the American
Petroleum Institute, which showed a huge crude stock drawdown.

"At this point, the energy markets are torn in different
directions," said Phil Flynn, analyst at PFGBest Research in
Chicago.

While the latest EIA data had both bearish and bullish
factors, the report overall appeared neutral and oil traders
will again look to the stock and the dollar markets for
direction for the rest of the day, Flynn said.

U.S. stocks were mostly flat after three days of declines,
as investors digested disappointing reports on the labor market
and factory orders that increased worry the rally may have run
too far ahead of the economy. [.N]

U.S. private employers cut 298,000 jobs in August, fewer
than a revised 360,000 jobs lost in July but more than the
250,000 job cuts expected by analysts, a report by ADP Employer
Services said on Wednesday. [ID:nN02429512]

New orders received by U.S. factories rose a
smaller-than-expected 1.3 percent in July, with a rise in
aircraft orders countering sluggish demand for nondurable
goods, government data showed.

PRICES

* On the New York Mercantile Exchange at 11:58 a.m EDT
(1458 GMT), October crude CLV9 was down 45 cents, or 0.66
percent, at $67.60 a barrel, trading from $67.05 to $68.80.

* In London, October Brent crude LCOV9 fell 48 cents, or
0.71 percent, to $67.25 a barrel, trading from $66.76 to
$68.55.

* NYMEX October RBOB RBV9 was up 1.40 cents, or 0.79
percent at $1.7962 a gallon, trading from $1.7680 to $1.8216.

* NYMEX October heating oil HOV9 was down 1.25 cents, or
0.71 percent, at $1.7464 a gallon, trading from $1.7373 to
$1.7836.

* The October/October RBOB crack spread <0#RB-CL=R> was at
$7.84, after ending at $6.80 on Tuesday. The October/October
heating oil crack spread <0#CL-HO=R> was at $5.75, after ending
at $5.82 on Tuesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $14.89, based
on the October 2014 contract Tuesday settlement at $82.49. The
spread ended Tuesday at $14.44.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $71.61/$70.78

Technical support/resistance:

NYMEX crude: $66.14/$71.00

NYMEX heating oil: $1.7230-$1.7948

NYMEX RBOB: $1.7409/$1.8235

For a full report on technicals, click on [ID:nL2602451]

MARKET NEWS

* The EIA said crude oil stocks fell 400,000 barrels last
week to 343.4 million barrels, slightly less than the forecast
for a 600,000-barrel drawdown in a Reuters poll, but far less
than the 3.2 million-barrel drop the American Petroleum
Institute reported on Tuesday. [EIA/S]

* Crude stocks at the NYMEX delivery hub in Cushing,
Oklahoma, fell by 600,000 barrels to 31.2 million barrels.

* Gasoline stocks slid 3.0 million barrels to 205.1 million
barrels, more than the forecast for a 900,000-barrel drawdown,
but close to the 2.8 million-barrel drop in the API data.

* Distillate stocks rose 1.2 million barrels to 163.6
million barrels, smaller than the forecast for a 600,000-barrel
increase and in line with the API's 920,000-barrel increase.

* Hovensa LLC said it does not expect to shut its 500,000
barrel-per-day St. Croix refinery in the U.S. Virgin Islands
due to Tropical Storm Erika. [ID:nN02530615]

* Tropical Storm Erika weakened slightly as it approached
the northern Leeward Islands, the U.S. National Hurricane
Center said. [ID:nN02508650]

* OPEC is likely to keep output targets steady when it
meets Sept. 9, a Kuwaiti OPEC delegate said. [ID:nL2552488]
(Reporting by Gene Ramos and Robert Gibbons)