* U.S. crude stocks up 1.3 mln bbls vs 3.4 mln-build
forecast
* Producers to meet April 17 in Qatar on proposed output
freeze
* Market rallies, awaiting Fed policy statement at 1800 GMT
(Adds latest market moves, details on gasoline and Cushing
builds and fund manager comments)
By Barani Krishnan
NEW YORK, March 16 (Reuters) - Oil prices rose about 4
percent on Wednesday, resuming their rally from a two-day slide,
after major oil producers firmed up plans to meet in Qatar to
discuss an output freeze and as U.S. crude stockpiles grew less
than expected and gasoline demand soared.
The oil market rebounded after a 5 percent slide this week
after Qatari oil minister Mohammed Bin Saleh Al-Sada said
producers from within and outside the Organization of the
Petroleum Exporting Countries will meet in Doha on April 17 to
discuss output freeze plans.
Around 15 OPEC and non-OPEC producers, accounting for about
73 percent of global oil output, support the initiative, the
minister said. Since the freeze was first proposed last month,
prices have recovered about 50 percent from decade low levels
but been volatile without a firm meeting date.
Oil prices gained further on data from the Energy
Information Administration (EIA) that showed crude inventories
in the United States USOILC=ECI rose 1.3 million barrels last
week to 523.2 million, hitting record highs for a fifth straight
week. EIA/S
The build, however, was smaller than the 3.4 million-barrel
gain forecast by analysts polled by Reuters and the 1.5
million-barrel build reported industry group, the American
Petroleum Institute.
The EIA also reported that U.S. gasoline demand over the
past four weeks was up 6.4 percent from a year ago.
"The data is moderately bullish with crude builds less than
expected, coupled with strong gasoline demand driven by lower
prices at the pump," said Chris Jarvis, analyst at Caprock Risk
Management in Frederick, Maryland.
Brent crude LCOc1 was up $1.21, or 3.1 percent, at $39.95
a barrel by 12:50 p.m. (1650 GMT). U.S. crude CLc1 rose $1.45,
or 4 percent, to $37.79.
The market steadied after the EIA data, ahead of a Federal
Reserve policy statement due at 2:00 p.m. EDT (1800 GMT) that
would lend direction on U.S. interest rates.
"Markets remain well supplied, with oil and demand growth
remaining modest, leading us to believe oil prices will remain
relatively low for some time," said Rob Haworth, senior
investment strategist at U.S. Bank Wealth Management, who helps
manage $125 billion.