* API: crude inventories down sharply as imports fall

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

* Dollar down, equities up after Treasury auction

NEW YORK, June 9 (Reuters) - U.S. crude oil futures struck
a new seven-month intraday high in post-settlement trading on
Tuesday after the American Petroleum Institute's weekly
inventory data showed a much larger-than-expected crude stock
drawdown last week.

The API said domestic crude stocks fell 6.0 million barrels
to 357.9 million barrels last week, citing a big drop in
imports. [API/S] The drawdown dwarfed the forecast in a Reuters
poll of analyst for just a 400,000-barrel decline.

"This is a very bullish report, seeing that crude stocks
and imports are down sharply and with refined products almost
unchanged from the previous week," said Peter Beutel, president
of Cameron Hanover, in Stamford, Connecticut.

The API said gasoline stocks were up just 27,000 barrels,
to 205.6 million barrels and distillate stocks were up a mere
19,000 barrels, to 150.7 million barrels.

Forecasts in the Reuters poll called for an 800,000 barrel
increase in gasoline stocks and a 1.4 million barrel build in
distillate supplies. [EIA/S]

Earlier, front-month July crude settled above $70 for the
first time in seven months as the dollar weakened and as
traders positioned ahead of weekly petroleum inventory data.

Also supportive, the U.S. Energy Information Administration
issued its latest forecast calling for higher world and U.S.
oil demand this year. [ID:nN09385541]

The EIA will release its own weekly inventory report on
Wednesday at 10:30 a.m. EDT.

PRICES

* On the New York Mercantile Exchange at the 5:15 p.m. EDT
(2115 GMT), July crude CLN9 was up $2.52, or 3.7 percent, at
$70.61 a barrel, after hitting an intraday high of $70.69, the
highest since prices hit $71.77 on Nov. 4. The day's low was
$68.43.

* July crude earlier settled up $1.92, or 2.82 percent, at
$70.01, the highest close since $70.53 was hit on Nov. 4.

* In London, July Brent crude LCON9 was up $2.14, or 3.15
percent, at $70.02 a barrel, after hitting an intraday high of
$70.06, the highest since Oct. 21's $73.29 high. It had settled
up $1.74, or 2.56 percent at $69.62, the highest close since
Oct. 21's $69.72. The day's low was $68.24.

* NYMEX July RBOB RBN9 was up 4.52 cents, or 2.33
percent, at $1.9812 a gallon, after extending the day's high to
$1.9815, short of Friday's $1.9945 peak. It had settled up 3.07
cents, or 1.59 percent, at $1.9667, the highest settlement
since Oct. 9's $2.0273. The day's low was $1.9343.

* NYMEX July heating oil HON9 was up 4.99 cents, or 2.82
percent, at $1.8178 a gallon, also extending the day's high, to
$1.8180, the highest since Nov. 24's $1.8302 high. It had
settled up 3.97 cents, or 2.25 percent, at $1.8076, the highest
close since Nov. 14's $1.8318. The day's low was $1.7756.

* The July/July RBOB crack spread <0#RB-CL=R> ended at
$12.59, down from $13.22 on Monday. The July/July heating oil
crack spread <0#CL-HO=R> ended at $5.91, down from $6.16 on
Monday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $15.61,
narrowing from $16.70 on Monday. The July 2014 contract settled
at $85.62, up 83 cents, or 0.98 percent.

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 dollar fell broadly as investors questioned whether
the economy had improved enough to justify talk of higher U.S.
interest rates by year-end.[USD/]

* 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.

* On Wall Street, the Nasdaq rose after an improved outlook
from Texas Instruments but news that 10 big banks will repay
government bailout funds failed to move investors. [.N]
(Reporting by Gene Ramos; Editing by Marguerita Choy)