UPDATE 7-Oil jumps over $56 on jobs, EIA data

                                
 * EIA data shows less-than-expected crude inventory rise
                                
 * Oil up over $2 after ADP U.S. private sector jobs data
                                
 * BofA stress test results show need for $34bln in capital
 (Recasts, updates prices and market activity, changes byline
from previous LONDON)
                                
 By Rebekah Kebede
                                
 NEW YORK, May 6 (Reuters) - Oil rose above $56 a barrel on
Wednesday, after news that private sector job losses slowed in
April and government data showing an unexpected drawdown in
gasoline stocks last week boosted hopes for a turnaround in the
economy.
                                
 U.S. light crude for June delivery was up $2.47 at $56.31 a
barrel by 12:26 p.m. EDT (1626 GMT) after reaching a fresh 2009
peak of $56.43 a barrel.
                                
 London Brent crude climbed $1.83 to $55.95.
                                
 U.S. private sector job losses slowed in April as employers
cut 491,000 from the salary rolls versus an expected loss of
650,000, a signal that the economy may be on its way to
recovery. [ID:nWEN8621]
                                
 "Recent 'light at the end of the tunnel' data in terms of
the economic recovery has translated into a modest price
recovery in the complex, independent of any fundamental
statistics, which are still on the 'dark side'," said Jay
Levine, a broker at Enerjay, LLC in Portland, Maine.
                                
 U.S. gasoline stocks declined unexpectedly last week,
falling 200,000 barrels to 212.4 million barrels, the Energy
Information Administration said on Wednesday.
                                
 The EIA reported that crude inventories increased 600,000
barrels last week to a fresh 19-year high at 375.3 million
barrels, a smaller build than expected. [ID:nN06161551]
                                
 "Today's numbers weren't as bearish as market expectations
and since the recent rally is based on the economic picture
improving, so too are prices," Levine said.
                                
 STRESS TEST
                                
 The market will look to the results of U.S. government bank
stress tests for signs of an economic recovery and that would
indicate growth in oil demand.
                                
 Equity markets fell earlier on 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 seen
needing more capital.
                                
 Oil has risen from lows around $30 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 as still weak. [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 Eileen Moustakis in New York and
Christopher Baldwin in London; Editing by Christian Wiessner)