(Corrects to data from American Petroleum Institute in the last paragraph)
* June new housing starts up 14.6 pct
* Wall street stocks, Euro rise
* Analysts expect U.S. crude inventories logged big draw
* Coming Up: US API oil stocks data, 2030 GMT
(Recasts, adds new dateline)
By Selam Gebrekidan
NEW YORK, July 19 (Reuters) Crude oil rallied on Tuesday on strong U.S. housing data and a positive outlook on the unfolding events of the euro zone debt crisis.
U.S. housing starts rose to a six-month high in June, up 14.6 percent from a month ago, pointing to a resilient economic recovery, data from the Commerce Department showed. [ID:nLDE76I14Y]
Oil's gains were extended as Wall street was lifted by the bullish housing data and corporate results at the market open and held its gains as investors preferred to hold on to riskier assets ahead of the emergency euro zone summit on Thursday.
Brent crude
Analysts said the bullish U.S. economic data trumped worries over the debt crisis across the Atlantic even as German Chancellor Angela Merkel warned Thursday's meeting will not offer spectacular results.
Some 17 European nations will meet on Thursday to outline steps to solve the Greek debt crisis.[ID:nL6E7IJ0PP]
"This is a little bit of cautious trading as the European governments looked like they just might get their act together before the Thursday meeting. It all smells and looks like short covering to me," said Dominick Chirichella, senior partner at the Energy Management Institute in New York.
Data from the American Petroleum Institute later on Tuesday is expected to show a significant draw in crude inventories and keep prices buoyed through the day. [EIA/S] (Additional reporting by Simon Falush in London, Seng Li Peng in Singapore)