* Oil prices shrug off mixed stock markets, focus on supply
* Traders eye Chinese trade, industrial output data for May
* For a technical view, click: []
* Coming Up: EIA inventory report; 1430 GMT
By Alejandro Barbajosa
SINGAPORE, June 9 (Reuters) - Oil rose for a third day on
Wednesday, adding 0.7 percent after an industry report showed a
larger-than-expected decline in U.S. crude stocks, bolstering
the view that a glut will dwindle as demand resurges.
Inventories fell 4.5 million barrels last week, the
American Petroleum Institute said on Tuesday, more than four
times as much as expected. []
The supply report allowed the oil market to temporarily
shrug off moves in equities, which continued to be mixed on
Wednesday. Crude futures traders have adopted stock indices as
a barometer for perceptions on risk, growth and energy demand.
U.S. crude for July delivery <CLc1> rose 55 cents to $72.54
a barrel at 0302 GMT, still down 17 percent from a 19-month
high above $87 in early May. July ICE Brent <LCOc1> was trading
almost at parity, up 20 cents at $72.50.
"The U.S. economy is certainly in recovery mode; oil
consumption seems to be recovering, with gasoline and
distillate fuel demand stronger," said David Moore, an analyst
at the Commonwealth Bank of Australia.
The Energy Information Administration (EIA) will publish
more closely watched government statistics on U.S. oil
inventories and demand on Wednesday at 1430 GMT.
"The EIA data tonight is important particularly because of
the large numbers we had in the API. We have to see if that is
replicated in the EIA data," Moore said.
The drop in U.S. crude inventories reported by the API was
matched by an equivalent increase in product supplies. Gasoline
stocks posted an unexpected increase of 1.5 million barrels and
distillates, including heating oil and diesel, logged a
larger-than-forecast gain of 3 million barrels.
"It would be premature to say that we have seen the bottom
in the market," Moore said.
"The data flow is a little bit uneven and the market still
has a focus on developments in Europe. There is obviously
potential for fiscal difficulties."
A report by Fitch Ratings that the Britain faced a
"formidable" fiscal challenge pushed European stocks to near
two-week closing lows. []
On Wednesday, Japan's Nikkei average fell 1 percent towards
a six-month low.
Chinese trade data for May, including oil statistics, will
be published on Thursday, followed by industrial production for
the same month on Friday, with growth forecast at 17.1 percent
in a Reuters survey, down from a 17.8 percent gain in April.
"The Chinese data could be quite market moving," Moore
said. "If it comes out weaker than expected, that would be
negative for commodities. If they come out stronger, they can
give confidence" about the recovery.
(Editing by Michael Urquhart)
