By Jane Merriman and Matthew Robinson
LONDON (Reuters) - Oil rose on Wednesday as concern about U.S. fuel supplies and signs OPEC cut output in September outweighed doubts about the U.S. government's plan to rescue the finance industry.
U.S. crude traded up $1.35 to $107.96 a barrel by 1513 GMT (11:13 p.m. EDT), while London Brent crude gained $1.36 to trade at $104.44 a barrel.
U.S. refinery utilization fell to the lowest level on record in the week through September 19, according to U.S. government data, reflecting shut-ins along the Gulf of Mexico caused by Hurricane Ike this month.
Crude stocks tumbled by 1.5 million barrels, below analyst expectations of a 2-million-barrel fall, while gasoline stocks fell by 5.9 million barrels, compared with analyst expectations of a 4-million-barrel draw.
Distillate stocks were down 4.2 million barrels against calls for a 1.5-million-barrel drop.
"The impact of Hurricane Ike was in full force in this week's EIA data, as supplies across the board dropped rather sharply, a trend that should continue over the coming weeks sending gasoline stocks to dangerously low levels," said Chris Jarvis, senior analyst for Caprock Risk Management.
Energy firms continued efforts to restart production at refineries and pipelines after Ike battered U.S. oil infrastructure in the biggest hit to the U.S. energy supplies since the 2005 hurricane season.
OPEC OUTPUT
Prices drew further support came from a report by Petrologistics that OPEC oil supply fell by 800,000 barrels per day (bpd) in September due to lower output from members including Saudi Arabia and Iran.
The estimate suggested OPEC was starting to cut back supplies to levels seen in July even before it agreed on September 10 to trim output to official targets to prop up prices.
"I think the Petrologistic numbers had an impact," said Olivier Jakob, analyst for Petromatrix.
Oil prices have dropped from a record peak above $147 a barrel in July as high fuel prices and mounting economic problems began to curb demand in the United States and other top consumers.
Fears the crisis in the financial sector could tip the global economy into recession have also weighed on oil and other markets.
World stocks slipped back and government bonds firmed on Wednesday after Warren Buffett's investment in Goldman Sachs failed to erase anxiety over the prospects for Washington's $700 billion bank bailout.
(Additional reporting by Fayen Wong in Perth; editing by Christopher Johnson)
