NYMEX-Crude ends higher on Fed optimism, stock draw

NEW YORK, Nov 4 (Reuters) - U.S. crude oil futures ended up
on Wednesday, though well below the day's highs, buoyed by an
optimistic economic outlook from the Federal Reserve and a
surprise weekly drawdown in crude inventories.

Crude oil futures scaled back gains after rising above $81
a barrel midmorning when U.S. Energy Information Administration
data showed an unexpected big drop in crude stocks last week,
which confirmed industry data released late on Tuesday.

The Federal Reserve expressed growing confidence that a
U.S. economic recovery was building, even though it stuck to
its commitment to keep borrowing costs near zero for "an
extended period." [ID:nN04453484]

"It was no surprise and nothing in the statement makes me
think policy changes are imminent, said Mike Fitzpatrick, vice
president at MF Global in New York.

Trading was choppy after the Fed statement following a
two-day meeting, with crude futures at one point threatening to
go negative, before they rose firmly back to the upside.

Analysts noted that the large crude drawdown was
supply-driven, not demand-driven, making traders skeptical
about pushing prices much higher.

Heating oil and gasoline futures rose, lifted by crude's
climb near the close and by EIA data showing their inventories
posted small drawdowns last week.

Wall Street briefly pared gains, then climbed higher in
choppy trading after the Fed decided to keep interest rates
unchanged, as expected.[.N]

Earlier, equities rose as data showed the services sector
grew in October while U.S. companies cut jobs last month at the
slowest pace in a year.

The dollar extended losses against the euro after the Fed
statement. [USD/]

For the Fed's statement, click on [ID:nTRU000422]

For a full report on the services sector and private
employment data, click on [ID:nN04349022] and [ID:nN04545735].

PRICES

* On the New York Mercantile Exchange, December crude
CLZ9 settled up 80 cents, or 1.01 percent, at $80.40 a
barrel, trading from $79.12 to $81.06.

* In London, December Brent crude LCOZ9 ended 78 cents,
or 1.0 percent, at $78.89 a barrel, trading from $77.67 to
$79.45.

* NYMEX December RBOB RBZ9 settled up 1.23 cents, or 0.61
percent, at $2.0127 a gallon, trading from $1.9862 to $2.0317.

* NYMEX December heating oil HOZ9 ended up 1.69 cents, or
0.82 percent, at $2.0902 a gallon, trading from $2.0566 to
$2.0996.

* The December/December RBOB crack spread <0#RB-CL=R> ended
at $4.13, down from $4.42 on Tuesday. The December/December
heating oil crack spread <0#CL-HO=R> ended at $7.39,
dippingfrom $7.48 on Tuesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $12.52,
widening from $12.36 on Tuesday. The December 2014 contract
settled Wednesday at $92.92, up 96 cents, or 1.04 percent.

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 American Petroleum Institute, 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 David
Gregorio)