NEW YORK, Nov 4 (Reuters) - U.S. crude oil futures scaled
back gains on Wednesday, despite government data showing a
surprisingly large drawdown in domestic crude stocks last week,
which confirmed industry data released late on Tuesday.

Front-month crude rose above $81 a barrel in a knee-jerk
reaction to the data from the U.S. Energy Information
Administration.

But, as the data confirmed the American Petroleum
Institute's report showing an unexpected heavy drop in crude
supplies, traders appeared unwilling to bid up crude any
further.

Heating oil futures were up after the government data
showed a drawdown in distillate supplies, with the heating oil
component showing a sharp decline.

Gasoline futures fell back, even tough the EIA data showed
a small drawdown, which went against forecasts for a build.

"While the latest EIA data appears to confirm the API
report yesterday, it also reflects the fact that the numbers
spell a negative trend for oil demand," said Phil Flynn,
analyst at PFGBest Research in Chicago.

"At this point, people are awaiting the result of the Fed
meeting and that seems to be already overshadowing the weekly
inventory reports."

Wall Street rose broadly on economic data showing the
services sector grew in October while U.S. companies cut jobs
last month at the slowest pace in a year, ahead of a Federal
Reserve statement on interest rates and the economy. [.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 11:40 a.m. EST
(1640 GMT), December crude CLZ9 was up 41 cents, or 0.52
percent, at $80.01 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 44 cents,
or 0.56 percent, at $78.55 a barrel, trading from $77.67 to
$79.45.

* NYMEX December RBOB RBZ9 fell 0.42 cent, or 0.21
percent, to $1.9962 a gallon, trading from $1.9870 to $2.0317.

* NYMEX December heating oil HOZ9 was up 0.43 cent, or
0.21 percent, at $2.0776 a gallon, trading from $2.0566 to
$2.0996.

* The December/December RBOB crack spread <0#RB-CL=R> was
at $3.74, after ending at $4.42 on Tuesday. The
December/December heating oil crack spread <0#CL-HO=R> was at
$7.25, after ending at $7.48 on Tuesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $11.95, 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.

* Refinery utilization was down 1.2 percentage point at
80.6 percent of capacity, against the forecast for an 0.1
percentage point increase, but just below the API's report of a
1.3 percentage point decline.

* 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 Walter
Bagley)