NYMEX-Crude firms above $69 on dollar, EIA forecast

* EIA raises global, U.S. 2009 oil demand forecast

* Dollar stays down, equities up after Treasury auction

* Crude stock draw forecast ahead of inventory data

NEW YORK, June 9 (Reuters) - U.S. crude oil futures held
sharp gains Tuesday afternoon as the dollar remained weak and
traders positioned for weekly petroleum inventory data which
will start to be rolled out later in the day.

Forecasts in an expanded Reuters poll of analysts called
for a 400,000-barrel drawdown in crude oil supplies and builds
in gasoline and distillate stocks. [EIA/S]

Prices also firmed after the U.S. Energy Information
Administration issued its latest forecast calling for increased
world and U.S. oil demand this year. [ID:nN09385541]

"The EIA data showing it has raised its world and U.S. oil
demand forecast for the first time since September is a sign
that things are stabilizing on the demand side," said Phil
Flynn, analyst, Alaron Trading in Chicago.

Wall Street regained its footing, briefly extending gains
following a solid U.S. Treasury note auction as concerns over a
possible rise in borrowing costs waned. [.N]

The euro extended gains against the U.S. dollar to trade at
session highs amid a broad sell-off in the greenback. [USD/]

"(Crude) prices are just underneath last week's highs and
the market is looking for signs on whether its rally will
continue. Right now, $70 is proving to be a significant
resistance level," said Gene McGillian, analyst at Tradition
Energy in Stamford, Connecticut.

PRICES

* On the New York Mercantile Exchange at 1:30 p.m. EDT
(1730 GMT), July crude CLN9 was up $1.21, or 1.78 percent, at
$69.30 a barrel, trading from $68.43 to $69.82.

* In London, July Brent crude LCON9 gained $1.22, or 1.79
percent, at $69.10 a barrel, trading from $68.24 to $69.64.

* NYMEX July RBOB RBN9 rose 1.79 cents, or 0.92 percent,
to $1.9539 a gallon, trading from $1.9343 to $1.9608. *

*NYMEX July heating oil HON9 was up 2.71 cents, or 1.53
percent, at $1.7950 a gallon, trading from $1.7756 to $1.81.

* The July/July RBOB crack spread <0#RB-CL=R> was at
$12.76. It ended at $13.22 on Monday. The July/July heating oil
crack spread <0#CL-HO=R> was at $6.09. It ended at $6.16 on
Monday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $15.49, based
on the July 2014 contract settlement on Monday at $84.79. The
spread ended at $16.70 on Monday.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $68.81/$62.91

Technical support/resistance:

NYMEX crude: $65.75/$70.32

NYMEX heating oil: $1.7255/$1.8139

NYMEX RBOB: $1.8790/$2.0000

For a report on technicals click [ID:nL91031467]

MARKET NEWS

* The American Petroleum Institute will issue its
inventory report for the week to June 5 at 4:30 p.m. EDT (2030
GMT) while the U.S. Energy Information Administration (EIA)
will release its data on Wednesday at 10:30 a.m. EDT.

* The EIA raised its forecast for 2009 world demand by
10,000 barrels per day from its May estimate of 83.67 million
bpd, marking the first time since September it has increased
its 2009 demand estimate.

* World demand will likely decline 1.8 million bpd this
year from the 2008 level. The EIA expected global demand in
2010 would rise to 84.41 million bpd, 20,000 more than it
forecast last month.

* In the United States, the EIA raised its 2009 consumption
forecast by 10,000 bpd to 18.86 million bpd.

* Ecuador Oil Minister Germanico Pinto told Reuters on
Tuesday he sees no need for an OPEC output cut at the moment as
world oil prices recover on the back of an improving economy
and past production reductions. [ID:nN09378583]

* A civil lawsuit against giant oil producer Royal Dutch
Shell (RDSa.L: Quote, Profile, Research) over the executions of protesters in Nigeria in
the 1990s will be settled for $15.5 million, a lawyer for the
families of those executed said. [ID:nN08316510]
(Reporting by Gene Ramos; editing by Jim Marshall)