* API crude and product stocks post rise
* Coming up: EIA U.S. inventory report; 1430 GMT
* For a technical view, click: [
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(Updates prices, adds graphic, detail)
By Emma Farge
LONDON, June 16 (Reuters) - Oil prices fell towards $76 a barrel on Wednesday after a surprise hike in crude inventories in the world's top energy consumer the United States.
U.S. crude inventories jumped 579,000 barrels in the week to June 11 and oil product stocks rose across the board, weekly data from the American Petroleum Institute (API) trade group said on Tuesday. [
]Prices extended losses later after U.S. housing starts fell more than expected in May to their lowest level in five months, a government report showed. [
]U.S. crude for July <CLc1> fell 85 cents to $76.09 a barrel at 1237 GMT, reversing an earlier rally above $77 to the highest level since mid-May. ICE Brent crude oil for delivery in August <LC0c1> was down 45 cents at $76.65 a barrel by the same time.
"When you look at the last data on the API side, it showed an increase in crude oil. We are also looking at a big jump in gasoline stocks and that could be pretty bearish for oil," said Christopher Barret, an oil analyst at Credit Agricole.
A U.S. government inventory report from the Energy Information Administration, deemed by many to be more comprehensive than the API, will be published later on Wednesday and is set to provide further direction.
The report will give clues on demand at the start of the summer driving season when gasoline consumption peaks.
A provisional poll of Reuters analysts showed that crude oil inventories dropped 1.2 million barrels and gasoline inventories rose 200,000 barrels last week. [
]U.S. weekly retail gasoline demand rose 1.4 percent in the week ended June 11 as prices at the pump continued to dip, but demand was down 2.2 percent year-on-year, the SpendingPulse report said on Tuesday. [
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RISK APPETITE
While prices were weaker on Wednesday, they were still nearly 20 percent above the 2010 low of $64.24 a barrel struck in late May, helped by better buying appetite for commodities such as oil.
Gains in the last two sessions have mostly been fuelled by rallying equities, reinforcing the link between the two markets.
World stocks rose to a one-month high the previous day and helped to tow U.S. crude prices above the key technical 200-day moving average. <.MIWD00000PUS>
"The S&P500 managed to start a penetration of its 200-day moving average, therefore West Texas Intermediate did the same," said Petromatrix analyst Olivier Jakob, referring to the U.S. crude benchmark. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a related graphic, please click on: http://graphics.thomsonreuters.com/gfx/JBO_20101506105359.jpg ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
The market on Wednesday was also weighing the potential implications of a speech from U.S. President Barack Obama in which he demanded that BP <BP.L> set aside billions of dollars to pay for the Gulf of Mexico oil spill. [
]While some expect the disaster to be bullish for oil prices in the long term as producers shy away from deepwater drilling, others think the accident could accelerate the shift away from traditional energy sources such as oil.
"Maybe for the long-term oil price it's bullish, but for the nearby months I don't see any reason to be bullish or bearish," said Keichi Sano, general manager of research at SCM Securities in Tokyo.
(Additional reporting by Alejandro Barbajosa; editing by William Hardy)