UPDATE 9-Oil hits 6-month high over $62 on US stockpile draw

                                
 * U.S. crude, gasoline inventories down
                                
 * ENI calls force majeure at Nigerian Brass River terminal
 (Recasts, updates prices, market activity)
                                
 NEW YORK, May 20 (Reuters) - Oil rose more than 3 percent
on Wednesday to hit a six-month high over $62 a barrel as
government data showed a steep drop in U.S. crude and gasoline
inventories ahead of the summer driving season.
                                
 U.S. crude <CLc1> rose $1.94 to settle at $62.04 a barrel,
before trading up to a six-month high of $62.26 in
post-settlement activity. London Brent <LCOc1> traded up $1.67
to $60.59 a barrel.
                                
 U.S. crude oil and gasoline stockpiles fell sharply last
week, according to a U.S. Energy Information Administration
report, with crude down 2.1 million barrels and gasoline off
4.3 million barrels. [ID:nN20506528]
                                
 "Week over week, the report is very bullish," said Phil
Flynn of Alaron trading in Chicago.
                                
 "There are still questions over the economy, whether these
prices can be sustained, which is why we will probably return
to the stock market to see if there are any signs of economic
help."
                                
 Stock market strength has supported crude prices in recent
months, helping lift them from lows below $34 a barrel on
optimism any rebound in the economy could spur fuel demand.
                                
 U.S. stocks pared gains after the Federal Reserve cut its
2009 forecast for gross domestic product and raised its
unemployment rate outlook. [.N]
                                
 Support also came as the dollar fell to its lowest level in
nearly five months, boosting commodities denominated in the
currency. [ID:nN20525273]
                                
 The Reuters-Jefferies CRB index <.CRB>, a global
commodities benchmark, hit six-month highs as raw materials
markets rallied amid equities gains and a weaker dollar.
[ID:nNYR000025]
                                
 Fire struck gasoline-making units at two U.S. refineries
this week, triggering a spike of roughly 8 percent in U.S.
gasoline futures on Tuesday as the United States gears up for
the traditional start of summer driving season, the Memorial
Day holiday on Monday. [ID:nN19450038]
                                
 Data from Japan showed gasoline inventories at their lowest
level since September 2007 and kerosene stocks declining to a
near three-year low in part due to strong sales. [ID:nT309678]
                                
 Further strength has come from unrest in OPEC member
Nigeria, Africa's top oil and gas exporter. Shooting broke out
in the Nigerian oil port city of Warri on Wednesday following
days of military helicopter and gunboat raids on militant camps
in the surrounding creeks. [ID:nLK90087]
                                
 Top Italian oil and gas company ENI SpA <ENI.MI> declared
force majeure for its Brass River export terminal in Nigeria,
adding its output affected so far was 9,000 barrels per day.
[ID:nMAT009592]
                                
 The Algerian oil minister said the Organization of the
Petroleum Exporting Countries (OPEC), which has agreed to cut
4.2 million bpd of output since September to prop up prices,
has no reason to cut output again when it next meets on May 28.
[ID:nN19444979]
                                
 The International Energy Agency said the economic downturn
is cutting investment in energy supply, raising the risk of
higher prices in future that could hamper any recovery.
[ID:nLK977002]
  (Reporting by Matthew Robinson, Gene Ramos, Robert Gibbons,
Edward McAllister in New York; Christopher Balwin in London;
Editing by David Gregorio)