* API: U.S. crude, product inventories down last week
* Oil seesaws, buffeted by China rates, Portugal downgrade
* Euro down, dollar up, capping oil's session gains
* Coming up: U.S. jobless claims, 8:30 a.m. EDT Thursday
NEW YORK, July 6 (Reuters) - U.S. crude oil futures turned positive in post-settlement trading on Wednesday after data from the American Petroleum Institute showed domestic crude stocks fell last week by much more than expected.
The industry group said crude stocks dropped by 3.2 million barrels in the week to July 1, against forecasts for a 2.3-million-barrel drawdown in a Reuters poll of analysts. [EIA/]
Gasoline futures extended gains as the API data showed gasoline stocks fell 1.9 million barrels against the forecast for a 100,000-barrel increase.
Heating oil futures also rose further as the report showed distillate stocks, which include heating oil and diesel fuel, fell by 1.6 million barrels, defying the forecast for a 700,000-barrel build.
Traders await data from the U.S. Energy Information Administration at 11 a.m. EDT (1500 GMT) on Thursday for further guidance.
Earlier, U.S. crude futures settled lower as China's move to raise interest rates for the third time this year and a downgrade of Portugal's credit rating stoked worries over oil demand.
Growth in the U.S. services sector dipped slightly in June, an industry report showed, adding to demand anxieties.
* On the New York Mercantile Exchange, crude for August delivery CLQ1 at 5:03 p.m. EDT (2103 GMT) was up 2 cents at $96.91 a barrel. It had settled at $96.65, off 24 cents or 0.25 percent, after trading between $95.90 and $97.79.
* In London, ICE Brent crude for August delivery LCOQ1 settled at $113.62 a barrel, a cent above Tuesday's close, in seesaw trading between $111.91 and $114.32.
* NYMEX August RBOB RBQ1 was up 3.26 cents, or 1.09 percent, at $3.01 a gallon while NYMEX August heating oil rose 1.84 cents, or 0.62 percent, to $2.9750 a gallon.
* U.S. crude's discount against Brent widened to $16.97 at the close, from $16.72 on Tuesday.
* China raised interest rates for the third time this year, making clear that taming inflation remains a top priority even as its vast economy gently eases. [ID:nL3E7FK17V]
* Moody's credit rating downgrade of Portugal late on Tuesday added to fears Europe's banks face heavy euro zone losses if a private-sector plan to help Greece comes unstuck.
* Growth in the U.S. services sector dipped modestly in June, an industry report showed. The Institute for Supply Management said its services index fell to 53.3 last month from 54.6 in May, shy of economists' forecasts for 54.0 in a Reuters survey. A reading above 50 indicates expansion. [ID:nN1E7650GW]
* The number of planned layoffs at U.S. firms increased for the second month in a row in June, though downsizing in the first half of the year was at the lowest level since 2000, a report on Wednesday showed. [ID:nN9E7HG00T]
* The U.S. National Hurricane Center said a low-pressure system over the southeastern Gulf of Mexico has a mere 10 percent chance of developing into a tropical depression over the next day or two. [ID: nL3E7I62I6]
* Japan's index of leading economic indicators rose 3.6 points in May from April, the biggest increase on record.
* Euro zone gross domestic product rose 0.8 percent in the first quarter, up from a 0.3 percent quarterly rise in Q4.
* Wall Street ended up, led by transportation shares, with broader gains limited as the downgrade of Portugal's credit rating weighed on banking shares while the higher interest rate in China loomed as another concern for investors. [.N]
* The euro fell for a second straight day against the U.S. dollar on global growth concerns after China's interest rate move, adding to worries spawned by Portugal's downgrade.
* Copper closed lower, snapping a six-day rally as the rate increase in China and further debt troubles in Europe lessened appetite for risky commodities. [MET/L]
* Gold rose for a third day to the highest level in two weeks as China's interest rate boost put inflation concerns back in the spotlight and as worries about euro zone debt stoked safe-haven buying. [GOL/]
* U.S. weekly jobless claims, 8:30 a.m. EDT (1230 GMT), Thursday.
* U.S. Energy Information Administration's weekly oil inventory report due on Thursday at 11 a.m. EDT (1500 GMT).
SETTLE NET PCT LOW HIGH CURRENT DAY AGO
CHNG CHNG VOL VOL CLc1 96.65 -0.24 -0.3% 95.90 97.79 271,422 275,650 CLc2 97.13 -0.25 -0.3% 96.39 98.25 68,857 67,267 LCOc1 113.62 0.01 0.0% 111.91 114.32 177,751 188,858 RBc1 2.9976 0.0202 0.7% 2.9440 3.0145 28,103 54,144 RBc2 2.9553 0.0178 0.6% 2.9052 2.9677 17,301 24,214 HOc1 2.9633 0.0067 0.2% 2.9284 2.9778 26,395 47,742 HOc2 2.9791 0.0063 0.2% 2.9459 2.9914 7,923 15,871 TOTAL MARKET VOLUME OPEN INTEREST
CURRENT Jul 05 30D AVG Jul 05 NET CHNG CRUDE 505,537 520,283 668,892 1,522,391 -144 RBOB 65,854 103,732 122,054 233,809 3,523 HO 45,589 94,163 116,459 297,471 -4,236 (Reporting by Gene Ramos and Robert Gibbons; Editing by Dale Hudson)