UPDATE 2-Oil climbs above $75 as dollar weakens

                                
   * U.S. crude, gasoline stockpiles unexpectedly rise -API
                                
 * Technicals show prices to rise towards $76
[ID:nSGE68L00C]
                                
 * Coming Up: U.S. EIA oil inventories; 1430 GMT
 (Updates prices)
                                
 By Alejandro Barbajosa
                                
 SINGAPORE, Sept 22 (Reuters) - Oil rose past $75 on
Wednesday, as a weaker dollar allowed it to shrug off an
industry report showing surprise gains in U.S. inventories.
                                
 The outlook for oil demand in the United States remained
sluggish after the Federal Reserve on Tuesday stopped short of
laying out a timetable to provide more stimulus to the economy,
following a one-day meeting to set policy. [ID:nN20109053]
                                
 But confirmation by the Fed that overnight interest rates
will remain near zero and expectations the U.S. central bank
would print more dollars sent the greenback to a seven-week low
against the euro. A weaker dollar means improved oil-purchasing
power for holders of other currencies. [USD/]
                                
 U.S. crude for November <CLc1>, the front-month contract
after October went off the board on Tuesday, rose 52 cents to
$75.49 by 0707 GMT, having slipped as much as 32 cents earlier.
ICE Brent for November <LCOc1> added 27 cents to $78.69.
                                
 "Towards the next two weeks, oil prices will be supported
by the weak dollar," said Ken Hasegawa, a commodity derivatives
manager at Japan's Newedge brokerage.
                                
 Japanese Prime Minister Naoto Kan said Tokyo was ready to
act for a second time since 2004 if the yen moved sharply,
keeping traders on guard against further intervention. The
dollar slid 0.45 percent against a basket of currencies. <.DXY>
                                
 STOCKPILE SURPRISES
                                
 U.S. crude inventories rose by 2.2 million barrels last
week, against expectations for a 1.9-million barrel drop, as
imports increased despite an outage on a pipeline carrying
Canadian crude to the United States, the American Petroleum
Institute (API) said on Tuesday. [ID:nN21241189]
                                
 "Inventory data has not had so much of an impact on this
market," Hasegawa said. "Generally speaking, crude oil has been
moving around $75 for a long time, so data showing an inventory
increase cannot push prices out of this range."
                                
 Gasoline stocks rose by 2.4 million barrels, the API said,
against analysts' forecast for a 300,000 barrel decline.
Distillates, including heating oil and diesel, rose by 2.5
million barrels, versus expectations of a 200,000 barrel gain.
                                
 Government statistics on inventories and demand will follow
from the U.S. Energy Information Administration on Wednesday at
1430 GMT.
                                
 In equity markets, Asia ex-Japan stocks <.MIAPJ0000PUS>
rose 0.7 percent to a near two-year high, though trading
volumes were thinned out by holidays, while major European
indices rose and U.S. stock futures <SPc1> climbed. [MKTS/GLOB]
                                
 Gold was in sight of $1,300 an ounce, having hit a record
high overnight after the Fed said it was ready if needed to add
more stimulus and that inflation was running below where it
would like it to be.
                                
 Weather forecasters were closely monitoring a tropical wave
in the southeastern Caribbean that is producing showers and
thunderstorms over much of the Windward Islands as it moves
westward. In a couple of days, it is expected to become a
tropical depression -- one step below tropical storm strength.
[ID:nN21145146]
 (Editing by Manash Goswami)