* U.S. crude stocks up 1.9 mln barrels-EIA
* Gasoline stocks off 1.2 mln barrels
* Distillate stocks down 1.2 mln barrels
* Markets fluctuate on Greek debt fears, bailout hopes
(Recasts, updates prices, adds detail)
By David Sheppard
LONDON, April 28 (Reuters) - Oil rose towards $83 a barrel
in volatile trade on Wednesday, as a drop in gasoline stocks in
the United States and moves towards a larger plan to help
severely indebted Greece overshadowed mounting crude stocks.
Stocks of crude oil in the United States rose by 1.9 million
barrels last week, the U.S. Energy Information Administration
(EIA) said, topping analysts' expectations. []
"We've seen crude builds in 12 out of the last 13 weeks, and
crude is still over $80 (a barrel)," said Jason Schenker,
president of Prestige Economics in Austin, Texas.
"Fundamentally, it's a bearish (EIA) report, but inventories
aren't the main factor driving markets right now."
Distillate stocks also rose, posting a gain of 2.9 million
barrels, though gasoline stocks declined by 1.2 million barrels.
U.S. crude for June delivery <CLc1> fell to a low of $81.29,
before paring losses to trade up 39 cents at $82.83 by 1509 GMT.
Prices are down by more than $2 so far this week.
London Brent for June delivery <LCOc1> was down 20 cents at
$85.58 a barrel.
A day after ratings agency Standard & Poor's cut Athens'
debt status to junk, news that a larger joint eurozone and
International Monetary Fund aid package for Greece was imminent
helped to underpin investments into risky assets such as energy.
A eurozone/IMF aid package for Greece will be worth 100-120
billion euros over three years, according to IMF Managing
Director Dominique Strauss-Kahn, opposition members of Germany's
parliament said after meeting him. []
U.S. equities rose on Wednesday as details emerged of the
plan. European shares had earlier slumped to a seven-week low
while the euro hit a one year-low against the dollar before
bouncing to trade higher on the day.
Oil and other dollar-denominated commodities tend to move in
the opposite direction to the greenback, as a weaker dollar
makes them cheaper for other currency holders and vice versa.
"The negative side (is) focusing on yesterday's break of the
50-day moving average, ongoing worries about Greek debt, and an
increased likelihood of position limits and financial
regulation," said MF Global analyst Tom Pawlicki.
"The positive side will cling to the belief that investment
can be maintained and save the market from falling."
In the past two days, oil prices have twice fallen below the
50-day moving average, a key technical indicator that often
proves a battleground for optimists and pessimists in the
market. The 50-day moving average is currently at $82.10.
(Additional reporting by Gene Ramos in New York and Alejandro
Barbajosa in Singapore; editing by Keiron Henderson)
