NYMEX-Crude trims gains further, awaits Fed

NEW YORK, Nov 4 (Reuters) - U.S. crude oil futures further trimmed
gains Wednesday afternoon, awaiting the Fed's statement on interest policy
and its reading of the economic recovery.

Crude oil futures have scaled back gains following a quick surge to
above $81 a barrel midmorning after government data showed an unexpected
big drop in domestic crude stocks last week, which confirmed industry data
released late on Tuesday.

Data from the U.S. Energy Information Administration showed crude
stockpiles fell sharply last week, defying forecasts that stocks rose. The
EIA data followed the American Petroleum Institute's report of a smaller
but still hefty drawdown.

Heating oil futures nursed small gains after the EIA data showed a
drawdown in distillate supplies, with the heating oil component showing a
sharp decline.

Gasoline futures were down despite EIA data showing a small drawdown,
which went against forecasts for a build.

"It's tough to put a bullish spin on the inventory data as it looked
like crude futures were just moving up with other commodities earlier,"
said Tom Knight, traders at Truman Arnold in Texarkana, Texas. "Now gold
and other major commodities are off their early highs, as the market awaits
the Fed's statement on interest rate policy."

Wall Street climbed on economic data data showing the services sector
grew in October while U.S. companies cut jobs last month at the slowest
pace in a year, while investors awaited the Fed's assessment of the
economic recovery. [.N]

The dollar fell against the euro and a basket of currencies as firmer
equity and commodity prices buoyed risk appetite and investors braced for
the policy decision from the Federal Reserve expected at about 2:15 p.m.
EST (1915 GMT). [USD/]

For a full report on the services sector and private employment data,
click on [ID:nN04545735]

PRICES

* On the New York Mercantile Exchange at 1:45 p.m. EST (1845 GMT),
December crude CLZ9 was up 37 cents, or 0.46 percent, at $79.97 barrel,
trading from $79.12 to $81.06. Before the EIA data, the contract was up 55
cents at $80.15.

* In London, December Brent crude LCOZ9 was up 29 cents, or 0.47
percent, at $78.40 a barrel, trading from $77.67 to $79.45.

* NYMEX December RBOB RBZ9 was down 0.12 cent, or 0.06 percent, at
$1.9992 a gallon, trading from $1.9861 to $2.0317.

* NYMEX December heating oil HOZ9 was up 0.48 cent, or 0.23 percent,
at $2.0781 a gallon, trading from $2.0566 to $2.0996.

* The December/December RBOB crack spread <0#RB-CL=R> was at $4.00,
after ending at $4.42 on Tuesday. The December/December heating oil crack
spread <0#CL-HO=R> was at $7.31, after ending at $7.48 on Tuesday.

* The spread between the current front month and the five-year forward
crude contract CLc61 was at $11.99, based on the December 2014 contract
Tuesday settlement at $91.96. The spread ended Tuesday at $12.36.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $79.23/$77.73

Technical support/resistance:

NYMEX crude: $78.16/$81.25

NYMEX heating oil: $2.0462/$2.1180

NYMEX RBOB: $1.9744/$2.0873

For a full report on technicals, click on [ID:nL4024127]

MARKET NEWS

* Crude stocks fell 4.0 million barrels to 335.9 million barrels, the
EIA said, greater than the 3.3 million barrel drawdown reported by the API,
and defying forecast for a 1.4 million barrel build in a Reuters poll.
[EIA/S]

* Crude stocks at the NYMEX delivery point in Cushing, Oklahoma, were
unchanged at 25.5 million barrels.

* Distillate stocks fell 400,000 barrels to 167.4 million barrels,
lower than the forecast for a 1.0 million barrel drawdown and against the
API's 1.8 million-barrel build.

* Gasoline supplies fell 300,000 barrels to 208.3 million barrels,
opposite the forecast for a 300,000 barrel increase and also against the
API report of a 500,000 barrel build.

* U.S. Northeast temperatures will average below normal through
Saturday and near to above normal in the six-to-10-day outlook, private
forecaster DTN Meteorlogix said. [ID:nDTN450]

* The International Energy Agency will "substantially" lower its
long-term oil demand forecast in its annual energy outlook, the Wall Street
Journal reported. [ID:nL4127240]
(Reporting by Gene Ramos and Robert Gibbons;
Editing by John Picinich)