NYMEX-Crude bounces from 12-week low after U.S. data

TOKYO, May 18 (Reuters) - U.S. crude futures bounced back on Wednesday after ending at a 12-week low following industry data that showed a surprise drop in U.S. product inventories.

U.S. crude stocks rose 2.7 million barrels last week, gasoline stocks fell 676,000 barrels and distillates dropped 2.8 million barrels, American Petroleum Institute data showed after Tuesday's settlement.

Ahead of the API report, a Reuters survey of analysts had forecast U.S. crude inventories would be up for the fourth straight week, but only by 1 million barrels.

Gasoline stocks were seen up 800,000 barrels and distillate stockpiles up only 700,000 barrels.

FUNDAMENTALS

* NYMEX crude for June delivery was up 78 cents at $97.69 a barrel by 0033 GMT, after rising to as high as $98.00 earlier. It settled down 46 cents at a 12-week low of $96.91 a day earlier on weak U.S. economic data and the expiry of contract options.

The June contract is set to expire after the settlement on Friday.

* London Brent crude for July delivery was up 44 cents at $110.43 a barrel, after settling down 85 cents.

* Manufacturing output fell 0.4 percent in April, breaking a run of nine straight months of gains, as supply disruptions from Japan's earthquake hit auto production, the Federal Reserve said. [ID:nN17138O4O]

* U.S. overall industrial production was flat, with gains in mining and utilities offsetting the drop in factory output. Excluding cars and parts, manufacturing output rose a sluggish 0.2 percent.

* The U.S. Coast Guard reopened a key U.S. agricultural export waterway on Tuesday, one day after stopping vessel traffic due to a threat to levees holding back high Mississippi River flood waters. [ID:nN17181374]

* The government inventory report from the U.S. Energy Information Administration is due at 10:30 a.m. EDT (1430 GMT).

MARKETS NEWS

* The Dow and the S&P 500 fell for a third day on Tuesday after disappointing figures from Wal-Mart and Hewlett-Packard, although a late rebound suggested investors may be looking for a short-term bounce.

* The euro gained against the dollar in choppy trading on Tuesday, but remains susceptible to losses related to how Greece might restructure its massive debt.

DATA/EVENTS

* The following data is expected on Wednesday: (Time in GMT)

- 1100 U.S. Mortgage Index Weekly

- 1800 U.S. FOMC Minutes April 26-27

- 1430 U.S. Energy Information Admin data Weekly (Reporting by Osamu Tsukimori; Editing by Michael Watson)