CORRECTED-Oil recovers ground after U.S. data shows crude stocks fall

(Correct headline to say that U.S. data shows crude stocks
fall, not build)
* U.S. crude stocks fell 5.9 mln bbls last week -API
* Ecuador says it will leave OPEC from Jan. 1
* Weak U.S. manufacturing data weigh on global shares

By Florence Tan
SINGAPORE, Oct 2 (Reuters) - Oil rebounded from several days
of declining values after industry data showed a surprise drop
in U.S. crude inventories, offsetting weak economic readings in
the United States that have depressed global stock markets.
Brent crude LCOc1 rose 52 cents to $59.41 a barrel by 0138
GMT, claiming back some of the ground lost over the past three
sessions. U.S. West Texas Intermediate crude CLc1 was at
$54.23 a barrel, up 61 cents.
Front-month WTI prices settled down for the sixth straight
session on Tuesday, their longest losing streak this year, after
U.S. manufacturing activity dived to a 10-year low as U.S.-China
trade tensions weighed on exports.
"Brent and WTI have erased those (Tuesday) losses in early
trade respectively," Jeffrey Halley, a senior market analyst at
OANDA in Singapore said, although the trading volume is low
because of regional holidays.
"We would expect the rallies to quickly run out of steam as
we approach $61.00 and $ 55.00 a barrel."
Oil pared some losses in post-settlement trade on Tuesday
after American Petroleum Institute (API) data showed U.S. crude
stocks fell last week by 5.9 million barrels, against
expectations for an increase of 1.6 million barrels.
API/S
The Energy Information Administration's weekly oil
inventories report is due at 10:30 a.m. EDT (1430 GMT) on
Wednesday. EIA/S
Oil prices are now below levels from before the Sept. 14
attacks on Saudi oil facilities as the world's largest oil
exporter has restored its full oil production and capacity.

"That means the market is not pricing in any risk premium
from further potential attacks," said Howie Lee, economist at
Singapore's OCBC bank.
Separately, Ecuador, one of the smallest members of the
Organization of the Petroleum Exporting Countries (OPEC), said
on Tuesday it will leave the 14-nation bloc from Jan. 1 due to
fiscal problems. The South American oil producer will be the
second to withdraw from OPEC in the last year after the
departure of Qatar.