UPDATE 8-Oil gains 2% after draws in U.S. product inventories

* U.S. crude, fuel stocks dip, refining runs slow -EIA
* U.S. drillers add oil and gas rigs for fifth week in row
* Exxon issues force majeure on Nigerian crude stream

(Updates with settlement prices, adds commentary)
By Stephanie Kelly
NEW YORK, Dec 23 (Reuters) - Oil prices rose more than 2% on
Wednesday, boosted by draws in U.S. inventories of crude,
gasoline and distillates that lifted investors' hopes for some
return in fuel demand.
Brent crude LCOc1 futures rose $1.12, or 2.2%, to settle
at $51.20 a barrel, while U.S. West Texas Intermediate (WTI)
crude CLc1 futures rose $1.1, or 2.3%, to settle at $48.12 a
barrel.
U.S. crude inventories USOILC=ECI fell by 562,000 barrels
in the week to Dec. 18 to 499.5 million barrels, the Energy
Information Administration said on Wednesday. Gasoline stocks USOILG=ECI fell by a surprise 1.1 million
barrels in the week to 237.8 million barrels, the EIA said,
while distillate stockpiles USOILD=ECI fell by 2.3 million
barrels in the week to 148.9 million barrels, more than
expected.
"We saw a modest recovery in distillate demand and gasoline
demand that was indicative of the holiday season," said Andrew
Lipow, president of Lipow Oil Associates in Houston. "Those
demand figures combined with gasoline and distillate inventory
draws have helped to support the market this morning."
U.S. energy firms this week added oil and natural gas rigs
for a fifth week in a row. The oil and gas rig count, an early
indicator of future output, rose 2 to 348 in the week to Dec.
23, energy services firm Baker Hughes Co BKR.N said Wednesday.
A falling U.S. dollar .DXY also supported prices. A weak
greenback makes dollar-denominated commodities such as crude oil
cheaper for holders of other currencies.
Investors also kept an eye on Nigeria, where supply
disruptions helped lift prices. Exxon Mobil Corp XOM.N issued
a force majeure on the Qua Iboe crude oil export terminal last
week after a fire hit the facility and injured two workers.
A source told Reuters production is expected to resume in
early January.
The stream was expected to load about 180,000 barrels per
day (bpd) in December and 150,000 bpd in January. Still, oil markets remain jittery about the future recovery
of oil demand as a new, highly infectious variant of the novel
coronavirus has hit Britain, prompting a slew of countries to
shut their borders to the country.
The number of Americans filing first-time claims for
unemployment benefits unexpectedly fell last week, though
remained elevated as more businesses faced restrictions and
consumers hunkered down amid rising COVID-19 cases.