Oil rises on US fuel draw, eyes on OPEC

NEW YORK, Mar 15 (Reuters) Oil prices rose above a barrel on Wednesday after a U.S. government report showed the fifth consecutive decline in gasoline stockpiles leading into the summer driving season.

The gains came on the eve of a meeting of the Organization of Petroleum Exporting Countries in Vienna at which the group is expected to commit to existing supply cuts amid rising concern over global economic growth.

U.S. crude settled up 23 cents at .16 a barrel after dipping earlier to a one-month low of .30. London Brent crude gained 16 cents to .06.

The latest snapshot of inventories in the United States, the world's biggest oil consumer, showed a 2.5 million barrel decline in gasoline stockpiles, alongside a modest 1.1 million barrel build in crude supplies. [EIA/S] U.S. gasoline supplies have fallen about 6 percent since early February as the nation's refineries slowed production for seasonal maintenance, according to the Energy Information Administration, kindling supply jitters ahead of the peak demand driving season.

The strength was tempered by worries a deepening mortgage lending crisis in the United States could spread to the rest of the economy in the world's biggest energy consumer.

The economic concerns, which have driven oil almost lower in the past four sessions, caught the attention of OPEC producers as they gauge the energy markets.

''The market is bearish,'' OPEC advisory committee member Edmund Daukoru said Wednesday. ''The global economy is slowing down. China is cooling off, India is cooling off, even the U.S.

that is the engine,'' he said.

The OPEC advisory committee will advise OPEC's full ministerial meeting on Thursday to keep current output restrictions in place.

''If you put all the factors together including non-OPEC growth it is bearish so we are looking to implement the full cuts,'' said Daukoru.

Analysts said that, while the oil market remained susceptible to the stock market slide, the fundamental supply and demand balance remained key.

''Oil markets are more focused on the fundamentals of oil and the seasonal weakness that lies ahead for products and crude demand,'' said Michael Wittner, oil analyst at Calyon investment bank.

On Tuesday the International Energy Agency, adviser to 26 industrial nations, issued a report saying the world would need extra oil from OPEC in the coming months.

Oil stocks in member nations of the Organization for Economic Cooperation and Development may be headed for their biggest fall in more than 10 years as OPEC production cuts take effect, the Paris-based agency said.

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