* API: crude inventories down sharply as imports fall
* Dollar falls vs high yielders as risk aversion cools
NEW YORK, June 10 (Reuters) - U.S. crude oil futures surged
to a new seven-month high on Wednesday, continuing to rally
after a bullish inventory draw reported by the American
Petroleum Institute late Tuesday and as the dollar fell.
Strong global equities and a higher opening seen on Wall
Street were also supportive, traders and analysts said.
"The complex was able to maintain a strong upward
trajectory through the overnight session with the assistance of
a continued weak dollar, strong equities and last night's
bullish crude figures as reported by the API," said Jim
Ritterbusch, president of Ritterbusch & Associates in Galena,
Illinois.
The API data showed domestic crude stocks fell 6.0 million
barrel to 357.9 million barrels last week, on account of a big
drop in imports and higher refinery runs. [API/S] The drawdown
dwarfed the forecast in a Reuters poll of analyst for just a
400,000-barrel decline.
The dollar fell against higher-yielding currencies on
Wednesday, prodded lower by a retreat in risk aversion as
global stock prices were lifted by investor optimism about an
improvement in the global economy. [USD/]
U.S. stock futures pointed to opening gains of more than 1
percent, following a rally in global equities underpinned by
higher commodity and energy prices. [.N]
NYMEX crude futures' early gains added to a strong finish
on Tuesday, having settled above $70 for the first time in
seven months on a weak dollar and in anticipation of weekly
petroleum inventory data .
Also supportive, the U.S. Energy Information Administration
issued its latest forecast on Tuesday calling for higher world
and U.S. oil demand this year. [ID:nN09385541]
The EIA will release its own weekly petroleum inventory
report at 10:30 a.m. EDT (1430 GMT).
PRICES
* On the New York Mercantile Exchange at the 9:10 a.m. EDT
(1310 GMT), July crude CLN9 was up $1.05, or 1.5 percent, at
$71.06 a barrel, trading from $70.43 to $71.65, the highest
intraday since prices hit $71.77 on Nov. 4. On Tuesday, it
settled at $70.01, up $1.92, or 2.82 percent, the highest close
since $70.53 hit on Nov. 4.
* In London, July Brent crude LCON9 was up 82 cents, or
1.18 percent, at $70.44 a barrel, trading from $69.92 to $71.
It settled on Tuesday up $1.74, or 2.56 percent at $69.62, the
highest close since Oct. 21's $69.72.
* NYMEX July RBOB RBN9 was up 1.20 cents, or 0.61
percent, at $1.9787 a gallon, trading from $1.9721 to $1.9940,
short of Friday's high of $1.9945. It ended on Tuesday up 3.07
cents, or 1.59 percent, at $1.9667, the highest settlement
since Oct. 9's $2.0273.
* NYMEX July heating oil HON9 was up 1.85 cents, or 1.02
percent, at $1.8261 a gallon, trading from $1.8123 to $1.8367,
the highest intraday since Nov. 17's $1.8906. On Tuesday it
settled up 3.97 cents, or 2.25 percent, at $1.8076, the highest
close since Nov. 14's $1.8318.
* The July/July RBOB crack spread <0#RB-CL=R> was at $12.05
after ending at $12.59 on Tuesday. The July/July heating oil
crack spread <0#CL-HO=R> was at $5.63, after finishing at $5.91
on Tuesday.
* The spread between the current front month and the
five-year forward crude contract CLc61 was at $14.38, after
ending at $15.61 on Tuesday. The July 2014 contract settled on
Tuesday at $85.62, up 83 cents, or 0.98 percent.
TECHNICALS
Support/resistance:
NYMEX crude: $70.00/$73.00
NYMEX heating oil: $1.74/$1.8906
NYMEX RBOB: $1.9600/$2.0000
MARKET NEWS
* The U.S. trade gap widened to $29.2 billion in April as
exports weakened again in a reflection of waning global demand,
a U.S. Commerce Department report on Wednesday showed.
[ID:nLA732745]
* The API said on Tuesday gasoline stocks were up 27,000
barrels, to 205.6 million barrels and distillate stocks were up
19,000 barrels, to 150.7 million barrels.
* Forecasts in the Reuters poll called for an 800,000
barrel increase in gasoline stocks and a 1.4 million barrel
build in distillate supplies. [EIA/S]
(Reporting by Gene Ramos; Editing by Lisa Shumaker)
