UPDATE 5-Oil breaks above $55 on jobs data

                                
 * Oil up 3 pct after ADP U.S. private sector jobs data
                                
 * API data shows unexpected crude, gasoline draw in U.S.
                                
 * BofA stress test results show need for $39bn in capital
                                
 
 (Updates prices, adds comment)
                                
 By Chris Baldwin
                                
 LONDON, May 6 (Reuters) - Oil rose more than $1 and broke
above $55 a barrel on Wednesday, bouncing up from moribund early
trade around $54 after data showed U.S. private sector job
losses had slowed in April.
                                
 U.S. light crude for June delivery was up $1.60 cents to
$55.43 a barrel by 1323 GMT, having settled 63 cents lower on
Tuesday.
                                
 London Brent crude was up $1.19 to $55.29.
                                
 "Crude and unemployment numbers aren't directly linked, but
the energy market and the metals market are both up on the back
of these (employment figures)," said Rob Montefusco, a trader at
Sucden Financial in London.
                                
 "That was a jolt, and with a bit of a recovering euro it
gives us a spurt."
                                
 U.S. private sector job losses slowed in April, coming in
below economists' expectations as employers cut 491,000 from the
salary rolls versus an expected 650,000 private-sector job
cuts.[ID:nWEN8621]
                                
 U.S. crude and gasoline inventories fell last week, the
American Petroleum Institute said on Tuesday, down from analysts
expectations by 1 million barrels of oil and nearly 3 million
barrels of gasoline.[ID:nN05253249]
                                
 A second set of inventory data, from the U.S. Energy
Information Administration (EIA), comes out on Wednesday at 1430
GMT, and could bring more support to prices if it confirms what
would be the first draw in crude stocks in nine weeks.
                                
 
                                
 STRESS TEST
                                
 The market will also look for the results of U.S. government
bank stress tests for any signs of an economic recovery that
could indicate growth in oil demand.
                                
 Equity markets had earlier fallen after reports that Bank of
America <BAC.N> needs $34 billion in fresh capital, according to
a source familiar with the results of one of those tests.
[ID:nN05520304]
                                
 Most of the 19 U.S. banks being tested intend to hold news
conferences on Friday to explain the results of the government's
assessments, with about 10 of the 19 banks deemed to need more
capital.
                                
 Oil has risen from the low $30s hit this winter, driven
higher by stronger equity markets, but has failed to settle
above $55 a barrel so far this year as the market sees oil
fundamentals still weak, with U.S. crude inventories at 19 year
highs. [ID:nN15385182]
                                
 Around 100 million barrels of crude oil and 25 million
barrels of products are estimated to be floating at sea on giant
tankers as supply outstrips demand.
 (Additional reporting by Maryelle Demongeot in Singapore,
editing by Keiron Henderson)