* U.S. crude inventory down 5.5 mln bbls last week -EIA
* U.S. core capital goods orders show biggest rise since
June 2014
(Adds comment, updates prices)
By Meeyoung Cho
SEOUL, Aug 27 (Reuters) - Brent crude climbed by more than
$1 a barrel on Thursday on an unexpected fall in U.S. crude
inventories and a rally in global equity markets, but a stronger
dollar capped gains.
Front-month Brent LCOc1 , the global oil benchmark, had
gained $1.10 to $44.24 a barrel by 0300 GMT, having ended down 7
cents at $43.14 on Wednesday.
U.S. crude's front-month contract CLc1 rose 91 cents to
$39.51 a barrel, after settling down 71 cents, or 1.8 percent,
at $38.60 a barrel.
"The local region is ... shrugging off some of the currency
impact, instead pricing in the draws on inventory and a better
than expected industrial outlook," said Michael McCarthy, chief
market strategist at CMC Markets in Australia.
U.S. crude inventories USOILC=ECI fell 5.5 million barrels
in the week to Aug. 21, the biggest one-week decline since early
June, data from the Energy Information Administration showed on
Wednesday. That was in line with the industry group the American
Petroleum Institute's late-Tuesday report. EIA/S API/S
Analysts had expected an increase of 1 million barrels.
But some said the inventory drop may not mark the start of a
trend.
"This sudden drop in inventories should be the result of
drops in US crude imports, suggesting that this week could be an
anomaly," said Daniel Ang, an investment analyst at Phillip
Futures Pte Ltd said.
Wang Tao, a Reuters market analyst for commodities and
energy, said Brent crude may approach resistance at $44.64 per
barrel again, as its bounce from the Aug. 24 low of $42.23
seemed to be incomplete.
In other financial markets, a rebound on Wall Street helped
soothe investors' tattered nerves, while the dollar rallied as
risk aversion eased. MKTS/GLOB
Regaining confidence after a sharp rebound on Wall Street
where investors had been hit by worries over China's faltering
economy, London copper futures also strengthened on Thursday.
MET/L
Data released on Wednesday showed U.S. non-defence capital
goods orders excluding aircraft, which is a proxy for business
investment, increased 2.2 percent in July, the biggest rise
since June last year and handily beating expectations. ECONUS
ID:nLLAQJEBR5
"This suggests that business investment has continued to
pick up at the beginning of the third quarter following a solid
finish to the second quarter," ANZ said in a morning note on
Thursday, referring to the U.S. core capital goods order data.