NYMEX-Crude shifts higher on weak dollar, eyes data

* Dollar down on Fed speculation about interest rates

* Wall Street recovers after dip on home sales data

NEW YORK, June 23 (Reuters) - U.S. crude oil futures
recharged Tuesday afternoon, bolstered by a weakened dollar and
as Wall Street recovered from earlier losses.

Traders were also gearing up for weekly inventory reports
forecast to show a drawdown in domestic crude supplies.

The U.S. dollar, which tends to move in the opposite
direction against oil, fell against the euro on speculation the
U.S. Federal Reserve may lower expectations of an interest rate
rise when it concludes a two-day policy meeting on Wednesday
[USD/]

On Wall Street, prices ticked up, with all three major
indexes making slight to moderate gains, after news of a solid
U.S. Treasury auction for two-year notes. [.N]

Petroleum inventory data will begin coming in late Tuesday
afternoon and were forecast to show that crude stocks last week
fell on average by 1.0 million barrels, according to a Reuters
poll of analysts. [EIA/S]

Gasoline and distillate stocks, which include heating oil
and diesel fuel were forecast to show inventory increases.

The industry group American Petroleum Institute will
release its report at 4:30 p.m. EDT (2030 GMT). The federal
U.S. Energy Information Administration will issue its own
report on Wednesday at 10:30 a.m. EDT (1430 GMT).

PRICES

* On the New York Mercantile Exchange at 1:45 p.m EDT (1745
GMT), August crude CLQ9 was up $1.33, or 2.0 percent, at
$68.83 a barrel, trading from $66.37 to $68.99.

* The July crude CLN9 contract went off the board Monday
at $66.93, down $2.62, or 3.77 percent on the day.

* In London, August Brent crude LCOQ9 rose $1.47, or 2.19
percent, to $68.45 a barrel, trading from $65.90 to $68.58.

* NYMEX July RBOB RBN9 gained 3.05 cents, or 1.64
percent, to $1.8906 a gallon, trading from $1.8368 to $1.9016.

* NYMEX July heating oil HON9 rose 3.37 cents, or 1.95
percent, to $1.7612 a gallon, trading from $1.7072 to $1.7642.

* The August/August RBOB crack spread <0#RB-CL=R> was at
$10.45. The August/August heating oil crack spread <0#CL-HO=R>
was at $6.99.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $14.23 based on
the August 2014 contract Monday settlement at $83.06.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $70.38/$68.86

Technical support/resistance:

NYMEX crude: $64.95/$69.40

NYMEX heating oil: $1.6856/$1.7694

NYMEX RBOB: $1.8183/$1.9011

For a report on technicals click [ID:nLN713112]

MARKET NEWS

* Sales of previously owned U.S. homes rose, but at a
slower-than-expected pace in May, an industry survey showed,
pointing to a sluggish economic recovery. [ID:nLN392294]

* OPEC will not cut output at its September meeting,
Kuwait's oil minister said on Tuesday. [ID:nLN892010]

* OPEC Secretary General Abdullah al-Badri said he hoped
OPEC's compliance with oil output targets would rise to more
than 80 percent next month. Compliance is now about 75 percent,
he said, speaking after OPEC-EU talks. [ID:nWLA7204]

* Oil markets may face a supply crunch by 2014 if global
GDP growth hits 5 percent in the coming years, Nobuo Tanaka,the
head of the International Energy Agency said. [ID:nN23276772]

* The number of mass layoffs by U.S. employers rose last
month to tie a record set in March, according to government
data that suggested the labor market has yet to stabilize.
[ID:nN2394]

* Chevron (CVX.N: Quote, Profile, Research) said it had started oil production at the
Frade field off the coast of Brazil, a $3 billion project with
output expected to reach 90,000 barrels per day by 2011.
[ID:nN231202]
(Reporting by Gene Ramos and Robert Gibbons; Editing by
Marguerita Choy)