* EIA: crude supplies fall sharply as imports down
* Dollar rebounds against euro, Wall Street dips
NEW YORK, June 10 (Reuters) - U.S. crude oil futures moved
toward session highs above $71 midday on Wednesday, supported
by government data showing a larger-than-expected crude
inventory drawdown and a surprise decline in refined products
last week.
Crude futures were stymied from pulling above the morning's
fresh seven-month high of $71.79 as the dollar rebounded
against the euro and as Wall Street dipped on economic recovery
worries amid surging oil prices.
Gasoline futures posted a fresh intraday high above $2 a
gallon, hitting their highest intraday price in eight months.
Heating oil futures traded just below their morning highs,
which touched the highest level in more than six months.
"Crude stocks are still 19.7 percent higher than a year
ago, so this is still not a tight market, but the
larger-than-expected draw is supportive short term
nonetheless," said Tim Evans, energy analyst at Citi Futures
Perspective in New York.
NYMEX crude futures' gains added to a strong finish on
Tuesday, having settled above $70 for the first time in seven
months on a weak dollar and anticipating the 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]
PRICES
* On the New York Mercantile Exchange at the 12:35 p.m. EDT
(1635 GMT), July crude CLN9 was up $1.26, or 1.8 percent, at
$71.27 a barrel, trading from $70.43 to $71.79, the highest
intraday since prices hit $71.77 on Nov. 4. On Tuesday, it
settled at $70.01, the highest since $70.53 hit on Nov. 4.
* In London, July Brent crude LCON9 was up $1.03, or 1.48
percent, at $70.65 a barrel, trading from $69.92 to $71.20. It
ended on Tuesday at $69.62, highest since Oct. 21's $69.72.
* NYMEX July RBOB RBN9 gained 3.44 cents, or 1.75
percent, at $2.0011 a gallon, trading from $1.9637 to $2.0085,
the highest intraday since Oct. 9's $2.0690. It settled on
Tuesday $1.9667, the highest since Oct. 9's $2.0273.
* NYMEX July heating oil HON9 rose 2.69 cents, or 1.49
percent, to $1.8345 a gallon, trading from $1.8109 to $1.8482,
the highest intraday since Nov. 17's $1.8906. On Tuesday it
settled at $1.8076, the highest since Nov. 14's $1.8318.
* The July/July RBOB crack spread <0#RB-CL=R> was at $12.78
after ending at $12.59 on Tuesday. The July/July heating oil
crack spread <0#CL-HO=R> was at $5.78, after finishing at $5.91
on Tuesday.
* The spread between the current front month and the
five-year forward crude contract CLc61 was at $14.35, 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 EIA said domestic crude stocks fell 4.4 million
barrels to 361.6 million barrels against the forecast for just
a 400,000 barrel drawdown in a Reuters poll. [EIA/S]
* Crude stocks at the NYMEX delivery hub in Cushing,
Oklahoma, fell 900,000 barrels to 29.0 million barrels.
* Gasoline stocks dropped 1.6 million barrels to 201.6
million barrels going against the forecast for an 800,000
barrel increase.
* Distillate stocks fell 300,000 barrels to 149.7 million
barrels defying the forecast for a 1.4 million barrel build.
* Refinery utilization was down 0.4 percentage point, to
85.9 percent of capacity. The forecast was for an 0.3
percentage point rise.
* The API said on Tuesday that U.S. crude stocks fell 6.0
million barrels, to 357.9 million barrels, gasoline stocks rose
27,000 barrels, to 205.6 million barrels, and distillate stocks
were up 19,000 barrels, to 150.7 million barrels.
* U.S. stocks fell with the Nasdaq dropping 1 percent, on
concern that surging oil prices may hurt an economic recovery.
[.N] and the U.S. dollar edged up against the euro, erasing
losses suffered after Russia's central bank said it will
diversify its current reserves by cutting U.S. Treasury
purchase. [USD/]
* 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 showed. [ID:nLA732745]
(Reporting by Gene Ramos; Editing by Lisa Shumaker)
