* API: crude inventories fell more than expected

* API: gasoline stocks dipped, just above forecast

* OPEC seen keeping output steady at Vienna meeting

NEW YORK, May 27 (Reuters) - U.S. crude oil futures held
their gains in post-settlement trading on Wednesday, as data
from the American Petroleum Institute showed a
larger-than-expected drawdown in crude stocks last week.

Gasoline stocks dipped slightly more than forecast, API
said, keeping traders cautious and paring gasoline futures'
gains.

"The API data showing refinery runs are up against a small
increase in imports is supportive," said Phil Flynn, analyst at
Alaron Trading.

"But we will still have to see what the DOE says tomorrow
... my sense is we will be seeing improved demand for gasoline,
given that we just started the summer driving season over the
Memorial Day holiday weekend," he added.

Earlier, NYMEX crude futures settled at the highest level
in almost seven months and smashed through their 200-day moving
average on expectations that OPEC would not alter production
levels when it meets Thursday.

Gasoline futures rose to a fresh seven-month high.
Gasoline's strength and tensions over North Korea were
supportive, countering the bearish effect of the dollar's
strength versus the euro.

The API said domestic crude stocks fell 2.8 million barrels
to 364.7 million barrels last week, gasoline stocks dropped
758,000 barrels to 205.4 million barrels and distillate stocks
rose 1.4 million barrels to 147.2 million barrels.

An expanded Reuters poll ahead of weekly inventory data
forecast a drop of 700,000 barrels in crude stocks, a decline
of 1.5 million barrels in gasoline stocks and a 1.1 million
barrel build in distillate stocks. [EIA/S]

The U.S. Energy Information Administration will issue its
inventory data on Thursday, at 11 a.m. EDT (1500 GMT).

OPEC ministers meet in Vienna on Thursday amid expectations
that output will be kept steady and improving demand will help
boost prices to $75 to $85 a barrel. [ID:nLM346491]

PRICES

* On the New York Mercantile Exchange at 5 p.m. EDT (2100
GMT), July crude CLN9 was up 52 cents, or 0.83 percent, at
$62.97 a barrel. It earlier settled up $1, or 1.6 percent, at
$63.45, the highest close since $65.30 on Nov. 5. It traded
from $62.19 to $63.82, the highest intraday since $65.56 was
hit on Nov. 10.

* Front-month crude prices CLc1 broke cleanly above the
key 200-day moving average of $62.17 on Wednesday for the first
time in more than eight months. [ID:nSIN159028]

* In London, July Brent crude LCON9 was up 77 cents, or
1.26 percent, at $62.01 a barrel. It had settled up $1.26, or
2.06 percent, at $62.50, trading from $60.99 to $62.75.

* NYMEX June RBOB RBM9 was up 2.38 cents, or 1.28
percent, at $1.8762 a gallon. It had settled up 3.93 cents, or
2.12 percent, at $1.8917, the highest settlement since Oct.
13's $1.9176. It traded from $1.8484 to $1.8992, the highest
intraday since $1.9990 was hit on Oct. 14.

* NYMEX June heating oil HOM9 was up 0.57 cent, or 0.37
percent, at $1.5510 a gallon. It had settled up 1.64 cents, or
1.06 percent, at $1.5617, trading from $1.5350 to $1.5728.

* The July/July RBOB crack spread <0#RB-CL=R> ended up at
$14.46, up from $14.05 at the close on Tuesday. The July/July
heating oil crack spread <0#CL-HO=R> ended at $3.26 down from
$3.53 at the close on Tuesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $12.96,
narrowing from $13.70 at the close on Tuesday. The July 2014
contract settled at $76.41, up 26 cents, or 0.34 percent.

MARKET NEWS

* The dollar rose against the euro as fear of a U.S. credit
downgrade faded. [USD/]

* The pace of sales of existing homes in the U.S. climbed
2.9 percent in April. But the inventory of existing homes for
sale rose 8.8 percent and the median national home price fell
15.4 percent. [ID:nN27549059]

* Sunoco Inc (SUN.N: Quote, Profile, Research) restarted the larger of two
gasoline-producing units on Wednesday morning at its
335,000-barrel-per-day Philadelphia refinery, sources familiar
with the refinery's operations said, following an equipment
breakdown on Tuesday. [ID:nN27256408]

* North Korea threatened to attack the South after it
joined a U.S.-led plan to check vessels suspected of carrying
equipment for weapons of mass destruction. [ID:nSP72126]
(Reporting by Gene Ramos and Robert Gibbons; editing by Jim
Marshall)