* U.S. stocks surge 2 percent

* Dollar slumps broadly

NEW YORK, July 15 (Reuters) - U.S. crude oil futures rose
on Wednesday after a government inventory report showed crude
supplies fell last week and as the dollar's weakness and strong
equities markets helped lift oil.

Tom Bentz, analyst at BNP Paribas Commodities Futures Inc,
noted that crude was getting added lift from the dollar's
weakness and the optimism fueling the equities rise.

"The DOE crude and distillate data were more supportive
than API. Gasoline was only one that put a temporary damper on
prices," Bentz said.

The U.S. Energy Information Administration's report on
Wednesday showed crude supplies fell 2.8 million barrels in the
week to July 10. Distillate supplies rose only 600,000 barrels,
while gasoline supplies rose 1.5 million barrels. [EIA/S]

Refinery utilization jumped 1.1 percentage point, the EIA
said, against a forecast for a slight slip in capacity use.

Reuters' analyst survey had predicted crude oil supplies
would be down 1.6 million barrels, with gasoline stocks seen up
1.0 million barrels and distillate stocks up 1.9 million
barrels.

Tuesday's American Petroleum Institute inventory report
showed crude oil supplies fell 1.2 million barrels last week.
Gasoline stocks dipped only 69,000 barrels. Distillate supplies
rose 625,000 barrels. [ID:nN14605500]

PRICES

* On the New York Mercantile Exchange at 12:03 p.m EDT
(1603 GMT), August crude CLQ9 was up $1.74, or 2.92 percent,
at $61.26 a barrel, trading from $59.65 to $61.46.

* NYMEX August crude oil options expire on Thursday.

* In London, August Brent crude LCOQ9 rose $2.14, or 3.52
percent, to $63.00 a barrel, trading from $61.33 to $63.13. The
August Brent contract expires on Thursday.

* NYMEX August RBOB RBQ9 rose 4.71 cents, or 2.86 percent
to $1.6937 a gallon, trading from $1.6525 to $1.6955.

* NYMEX August heating oil HOQ9 rose 6.64 cents, or 4.39
percent, to $1.5783 a gallon, trading from $1.5165 to $1.5811.

* The August/August RBOB crack spread <0#RB-CL=R> was at
$9.81, after ending at $9.64 on Tuesday. The August/August
heating oil crack spread <0#CL-HO=R> was at $4.96, after ending
at $3.98 on Tuesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $17.37, based
on the August 2014 contract Tuesday settlement at $78.63. The
spread ended Tuesday at $19.11.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $62.31/$66.04

Technical support/resistance:

NYMEX crude: $58.32/$62.00

NYMEX heating oil: $1.5030/$1.5520

NYMEX RBOB: $1.6010/$1.68

For a report on technicals, click on [ID:nLF174390]

MARKET NEWS

* The dollar fell to a one-month low against a basket of
six major currencies and the euro rose 1 percent on the day
versus the greenback. [USD/]

* U.S. stocks rose more than 2 percent as Intel Corp's
(INTC.O: Quote, Profile, Research) quarterly results and outlook reinforced hopes for an
economic recovery. [.N]

* OPEC could cut output at its September meeting, if oil
fell below $50-$55 a barrel, a member of Kuwait's Supreme
Petroleum Council said. [ID:nLF271261]

* Nigeria's most prominent militant group said it would
observe a 60-day cease-fire from Wednesday. [ID:nLF20151]
(Reporting by Robert Gibbons; Editing by Walter Bagley)