NYMEX-Crude pares gains, post-settle, on API build

* API: crude inventories up, against draw forecast

* Bernanke: Recession likely over, but recovery slow

* U.S. retail sales, producer prices rise in August

* Dollar cedes gains versus euro, currencies basket

NEW YORK, Sept 15 (Reuters) - U.S. crude oil futures pared
gains in post-settlement trading on Tuesday after industry data
showed a surprise increase in domestic crude stocks last week.

Heating oil and gasoline futures trimmed gains as the data
showed distillate and gasoline stocks rose more than expected.

Earlier, crude futures settled up more than $2 a barrel,
rallying on economic recovery optimism and as a weaker dollar
enticed investors to the oil markets.

The American Petroleum Institute, in a weekly inventory
report, said that crude stocks rose 631,000 barrels in the week
to Sept. 11, against the forecast in a Reuters poll of analysts
for a 2.4-million-barrel drawdown. [ID:nN1577720] [EIA/S]

The industry group said gasoline stocks rose 1.3 million
barrels, more than twice the forecast for a 600,000 barrel
build in the poll.

Most stunning for analysts, distillate stocks, which
include heating oil and diesel fuel, jumped 5.2 million
barrels, against the forecast for a 1.3 million barrel rise.

"What strikes me the most in the API report is the
incredible build in distillates, even with our current surplus
in supplies already above the five-year average," said Phil
Flynn, analyst at PFGBest Research in Chicago.

"This is very bearish and tells you that we still have
demand issues that probably reflect some of the problems we
still have in the economy. Of course, we'll have to wait for
tomorrow's EIA data to see if these industry numbers will
stick," he added.

On Wednesday, the U.S. Energy Information Administration
will release its own data at 10:30 a.m. EDT (1430 GMT).

U.S. Federal Reserve Chairman Ben Bernanke said the worst
recession since the Great Depression was probably over, but the
recovery would be slow. [ID:nN1523355]

U.S. equities ended at their highest so far this year after
stronger manufacturing and retail sales data lifted commodity
prices and shares of materials companies.[.N]

U.S. retail sales in August rose at their fastest pace in
3-1/2 years, the Commerce Department said. [ID:nN15548319]

U.S. producer prices in August rose more than twice the
forecast as gasoline prices surged, while prices declined less
than expected compared with a year ago, a government report
showed on Tuesday. [ID:nN15543702]

The U.S. dollar fell to its lowest level in nearly a year
against a basket of currencies as gains in global stock markets
dented the greenback's appeal as a safe haven. [USD/]

PRICES

* On the New York Mercantile Exchange at 5:15 p.m. EDT
(2215 GMT), October crude CLV9 was up $1.44, or 2.09 percent,
at $70.30 a barrel. It had settled earlier up $2.07, or 3.01
percent, at $70.93, trading from $68.48 to $71.19.

* In London, new front-month November Brent crude LCOX9
was up 79 cents, or 1.16 percent, at $69.16 a barrel, after
settling at $69.86 and trading from $67.52 to $70. October
Brent LCOV9 had expired, ending down 9 cents, or 0.13
percent, at $67.35.

* NYMEX October RBOB RBV9 was up 3.17 cents, or 1.82
percent, at $1.7750 a gallon, after settling at 4.59 cents, or
2.63 percent, at $1.7892. It traded from $1.73 to $1.7980.

* NYMEX October heating oil HOV9 was up 1.78 cents, or
1.02 percent, at $1.76 a gallon. It had settled up 3.79 cents,
or 2.18 percent, at $1.7801, trading from $1.73 to $1.79.

* The October/October RBOB crack spread <0#RB-CL=R> ended
at $3.83, dropping from $4.36 on Monday. The October/October
heating oil crack spread <0#CL-HO=R> ended at $4.22, down from
$4.31 on Monday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $12.46,
narrowing from $13.57 on Tuesday. The October 2014 contract
settled on Tuesday at $83.39, up 96 cents, or 1.16 percent.

MARKET NEWS

* OPEC said that evidence of an impending world economic
upturn appears to be gathering but recovery will be slow and
gradual. OPEC left its world oil demand forecast for 2010
unchanged. [ID:nLF431497]

* U.S. retail gasoline demand last week fell 3.1 percent
from a year ago, but was nearly unchanged from the previous
week, a MasterCard SpendingPulse report said. [ID:nNYS005413]
(Reporting by Gene Ramos and Robert Gibbons; Editing by
Marguerita Choy)