NYMEX-Crude ends up on geopolitics, gasoline draw
* Traders react to Russia comments on shield deal
* Gasoline, heating oil recover from earlier dips
* TS Fay's possible return to Gulf of Mexico watched
NEW YORK, Aug 20 (Reuters) - U.S. crude oil futures ended higher on Wednesday on geopolitical worries following news of Russia's potential response to a the U.S.-Poland missile shield deal and news of a big drawdown in gasoline stocks.
The late reversal in prices overcame crude's session losses of almost $3, which were fueled by government inventory data showing a larger-than-expected increase in crude supplies.
On the New York Mercantile Exchange, September crude CLU8 expired and settled up 45 cents, or 0.39 percent, at $114.98 a barrel, after trading from $112.61 to $117.03.
"The news of Russia's potential response to the U.S.-Poland missile shield is causing crude to recover from earlier losses here," said an off-floor NYMEX broker.
"The market is beginning to look at Russia more seriously here after discounting what it did to Georgia last week," the broker added.
Technical resistance was charted at $120, above the $119.07 20-day moving average, with support remaining at $110.
In London, October Brent LCOV8 ended up $1.11, or 0.98 percent, at $114.36 a barrel, trading from $111.61 to $115.59.
Russia issued a harsh response on Wednesday to the announcement of a deal between Poland and the United States to base part of a U.S. missile defense system on Polish soil.
"Russia in this case will have to react and not only through diplomatic protests," Russia's Foreign Ministry said in a statement issued on its website www.mid.ru. [ID:nLK431570]
The Energy Information Administration said that for the week to Aug. 15, domestic crude stocks rose 9.4 million barrels to 305.9 million barrels, the biggest weekly increase since the week to March 23, 2001. [EIA/S]
A Reuters analyst poll forecast an 800,000-barrel build.
Crude imports rose 1.3 million barrels per day to 11 million barrels per day, due to the offloading of imports that were delayed the previous week by Tropical Storm Eduoard.
Gasoline stocks fell 6.2 million barrels to 196.6 million barrels, against the forecast for a 2.7-million-barrel drop. Continued...

