UPDATE 8-Oil settles 3 pct higher after inventory fall

* U.S. crude stocks down, gasoline up in July 4 week

* Distillates at 25-year high

* Weak U.S. dollar, strong equities support market

* Nigerian militants agree to 60-day ceasefire (Recasts, updates prices and market activity to settlement)

By Rebekah Kebede

NEW YORK, July 15 (Reuters) - Oil prices settled over 3 percent higher on Wednesday, supported by falling U.S. crude oil inventories, news of quarterly corporate results that were better than expected and some signs of economic recovery.

U.S. crude settled at $61.54 a barrel, up $2.02 or 3.39 percent after reaching a high of $61.98 a barrel.

London Brent crude settled at $63.09 a barrel, up $2.23.

Crude stocks in the United States, the world's top oil consumer, fell last week by a greater-than-expected 2.8 million barrels to 344.5 million barrels, the U.S. Energy Information Administration said. [EIA/S]