UPDATE 1-Oil rises to 6-month peak above $60, eyes US data

                                
 * Asian stocks rise despite Wall St's lower close
                                
 * U.S. crude inventory likely fell 200,000 bbls -poll
                                
 * Algerian oilmin says no reason for more OPEC output cuts
 (Updates prices, adds analyst comments)
                                
 SINGAPORE, May 20 (Reuters) - Oil prices rose above $60 a
barrel on Wednesday, hitting a new six-month high, as investors
awaited more U.S. oil inventory data and kept a close watch on
equities for direction.
                                
 Oil prices gained this week as fire struck gasoline making
units at U.S. refineries, lifting U.S. gasoline futures to a
seven-month high settlement on Tuesday on supply concerns
leading into the peak summer driving season. [ID:nN19450038]
                                
 U.S. crude <CLc1> rose 45 cents to $60.55 a barrel by 0530
GMT, and London Brent <LCOc1> rose 27 cents to $59.19.
                                
 "Prices have already broken through the $60 level. For
today, it's just a small movement within range as there is no
significant news in the market," Ryuichi Sato, an analyst at
Tokyo-based Mizuho Corporate Bank, said.
                                
 He said he would look to the 200-day moving average --
currently at $63.30 -- as the next resistence level for U.S.
crude over the next two weeks.
                                
 Commodities markets have closely tracked the stock market
in recent months as dealers seek signs of economic health.
                                
 Tokyo's Nikkei average <.N225> was up 0.49 percent at 0525
GMT, shrugging off data that showed Japan suffered a record
contraction in the first quarter. [ID:nSP468900]
                                
 But oil data from the world's No. 2 economy was more
bullish, showing gasoline inventories fell to their lowest
since September 2007 and kerosene stocks declined to a near
three-year low in part due to strong sales. [ID:nT309678]
                                
 Oil prices have been on an upward trend since mid-April on
equity-led rallies. They have recovered from below $33 in
December after a plunge from record highs above $147 in July. 
                                
"The move from $50 to $60 is quite abrupt. I don't think oil
prices can go much higher at this point ... I think a lot of
oil's rise has been driven by speculation that the worst is
over, but is the real demand there yet?" said Michelle Kwek, an
analyst at Informa Global Markets in Singapore.
                                
 Traders will also look out for inventory data from the U.S.
Energy Information Administration (EIA) due later in the day as
the country heads into the vacation season.
                                
 U.S. crude stockpiles probably fell last week by 200,000
barrels, while gasoline inventories were down by 1.2 million
barrels and distillate stocks up 1.0 million barrels, an
expanded Reuters poll showed. [EIA/S]
                                
 The American Petroleum Institute (API) said on Tuesday U.S.
crude stocks fell by a much larger than expected 4.5 million
barrels in the week to May 15. [ID:nN19410277]
                                
 The Organization of Petroleum Exporting Countries (OPEC),
which has agreed to cut 4.2 million barrels per day of output
since September in a bid to prop up oil prices, has no reason
to cut crude production when it next meets on May 28, Algerian
Energy and Mines Minister Chakib Khelil said. [ID:nN19444979]
                                
 "If the price stays at this level ... I don't think there
will be any reason to cut," he said.
                                
 Oil prices have also been buoyed this week by unrest in
OPEC member Nigeria. The country's security forces clashed with
militants on Tuesday close to an oil flow station in the
western Niger Delta operated by Chevron <CVX.N>.
                                
 Africa's top oil and gas exporter, which has sent three
battalions of ground troops to search for militants on Tuesday,
is on alert for retaliatory attacks after launching its biggest
offensive for several years last week against the militants.
[ID:nLJ576599]
 (Reporting by Chua Baizhen, Editing by Ben Tan)