Oil hits six-month high on U.S. stockpile draw

NEW YORK (Reuters) - Oil rose more than 3 percent on Wednesday to hit a six-month high over $62 a barrel as government data showed a steep drop in U.S. crude and gasoline inventories ahead of the summer driving season.

U.S. crude rose $1.94 to settle at $62.04 a barrel, before trading up to a six-month high of $62.26 in post-settlement activity. London Brent traded up $1.67 to $60.59 a barrel.

U.S. crude oil and gasoline stockpiles fell sharply last week, according to a U.S. Energy Information Administration report, with crude down 2.1 million barrels and gasoline off 4.3 million barrels.

"Week over week, the report is very bullish," said Phil Flynn of Alaron trading in Chicago.

"There are still questions over the economy, whether these prices can be sustained, which is why we will probably return to the stock market to see if there are any signs of economic help."

Stock market strength has supported crude prices in recent months, helping lift them from lows below $34 a barrel on optimism any rebound in the economy could spur fuel demand.

U.S. stocks pared gains after the Federal Reserve cut its 2009 forecast for gross domestic product and raised its unemployment rate outlook. .N

Support also came as the dollar fell to its lowest level in nearly five months, boosting commodities denominated in the currency.

The Reuters-Jefferies CRB index .CRB, a global commodities benchmark, hit six-month highs as raw materials markets rallied amid equities gains and a weaker dollar.