SANTIAGO, July 23 (Reuters) - Chilean stocks rose in late morning trade on Wednesday as lower oil prices gave the market new momentum, while the peso slipped for a second day against the dollar.

The blue-chip IPSA .IPSA advanced 2.04 percent to 2,909 points, while the all-market IGPA index .IGPA rose 1.48 percent to 13,982 points.

"Oil prices are driving the market," said Antonio Fuenzalida, deputy investment manager with the Euroamerica brokerage. "The more they fall, the less pressure it puts on inflation, and interest rate hikes become less likely.

"As prices fall, it's going to provide relief in general to economies and give bourses a second wind."

Blue-chip gains outnumbered declines by more than 7 to 1 in late morning trade after U.S. oil futures fell near month-and-a-half lows as Hurricane Dolly missed major oil and gas production facilities in the Gulf of Mexico and Texas and the dollar strengthened.

Cross sector gains were led by wood pulp exporter Copec COP.SN, weighted at about 12 percent of the IPSA, as its shares jumped 3.81 percent.

Regional electric utilities Enersis ENE.SN and generating subsidiary Endesa Chile END.SN advanced 2.62 percent and 2.9 percent respectively.

Blue-chip percentage gains were led by dominant air carrier LAN LAN.SN (LFL.N: Quote, Profile, Research) as its shares surged 5.69 percent, while leading shipper Vapores VAP.SN advanced 3.53 percent, buoyed buy lower oil futures.

Retail sector gains were led by department store chain La Polar LAP.SN, up 3.09 percent and by regional retailer Cencosud CEN.SN, with a gain of 2.27 percent.