* U.S. crude, gasoline stocks fall more than expected
* Dollar rise, Wall St. dip curbs oil strength
* Coming up: U.S. payrolls data on Friday
(Recasts, adds detail)
By Robert Gibbons
NEW YORK, June 3 (Reuters) - U.S. crude oil futures rose
more than 2 percent on Thursday, supported by much lower than
expected crude and gasoline inventory data as the beginning of
the summer driving season spurred gasoline demand.
U.S. crude for July <CLc1> settled at $74.61 a barrel, up
$1.75. In London, ICE Brent <LCOc1> rose $1.66 to settle at
$75.32 a barrel.
"The draws in gasoline and crude really stand out right
away, which helps boost that market right back up above $73 a
barrel," Tradition Energy analyst Gene McGillian said. "The
real question will come here whether we can get through that
resistance level of $74.50 to $75 a barrel."
Crude futures staged a rally after the U.S. Energy
Information Administration said crude inventories fell by 1.9
million barrels last week [], far more than the consensus
expectation for a 100,000-barrel dip.
Gasoline inventories also fell sharply, sliding 2.6 million
barrels, the EIA said. Expectations were for a 500,000-barrel
fall. Distillates rose slightly more than expected and refinery
capacity use fell.
Data from the EIA showed inventories at the U.S. crude oil
hub at Cushing, Oklahoma, rose last week to match a record
reached two weeks ago, while industry data provider Genscape
said supplies were little changed in the week to June 1.
Earlier in the session, rising inventories at Cushing
weighed on the front end of the futures curve, after the
previous report showed a stockpile slip.
Despite the supportive inventory data, there were signs
that global supply was on the rise.
Seaborne oil exports by OPEC, excluding Angola and Ecuador,
will rise in the four weeks to June 19, according to Oil
Movements, a UK consultancy that tracks future shipments.
[]
Compliance by members of the Organization of the Petroleum
Exporting Countries with promised cutbacks has fallen to 51
percent, according to Reuters estimates. []
VOLATILE WEEK
The U.S. dollar firming against the euro <EUR=> limited
oil's rise. []
The dollar's rise was being attributed to bets for stronger
U.S. monthly payroll data on Friday, which would indicate a
growing economy and bode well for energy demand. Economists
polled by Reuters expected U.S. non-farm payrolls to show the
creation of 500,000 jobs.[]
Dollar strength makes dollar-priced commodities more
expensive for holders of other currencies and can redirect
investment into foreign exchange trading.
Crude prices had been supported by firm equity markets,
before lackluster retail sales data in the United States offset
some of the positive signs on the employment front and put Wall
Street into negative territory. [] (Graphic
http://link.reuters.com/ruv97k)
Concern about a slowdown in China's economic growth had
weighed on oil prices this week, hitting sentiment already
battered by Europe's debt crisis.
After collapsing by more than 20 percent from a 2010 high
above $87 a barrel in early May, oil prices have found support
in the region of $70 to $74, torn between evidence that the
world's biggest oil-consuming nations are posting steady growth
in demand and speculation that consumption will be hurt by a
stagnant European economy.
"Crude demand will ease slightly ahead of the seasonal
pick-up in the second half of this year, but we remain
confident it will still grow strongly in 2010," VTB Capital
analyst Andrey Kryuchenkov said.
(Additional reporting by the New York Energy Desk, David
Sheppard in London and Alejandro Barbajosa in Singapore;
Editing by Walter Bagley)
