UPDATE 5-Oil prices rise on economic outlook, drawdown in fuel stocks

* U.S. crude stocks surge, fuel inventories fall - EIA
* Biden's $1.9 trillion COVID-19 bill wins final approval in
House
* Global oil stocks rise as market recovery hits speed bump

(Updates prices)
By Julia Payne
LONDON, March 11 (Reuters) - Oil prices rose on Thursday on
a weaker dollar as fears of rising U.S. inflation eased while a
steep fall in U.S. fuel stocks meant a crude glut would be
short-lived as refiners restart in Texas.
Brent crude oil futures LCOc1 for May rose 79 cents, or
1.16%, to $68.69 a barrel by 1430 GMT, while U.S. West Texas
Intermediate crude CLc1 for April was up 62 cents, or 0.96%,
at $65.06. Both contracts had risen by more than $1 a barrel in
earlier trade.
"Fears of inflation are receding as the February U.S. CPI
was at 1.7%. Consequently, bond yields fell and equities
stabilized with the Dow hitting an all-time high. The dollar,
therefore, is weakening, which helps oil," Tamas Varga, senior
analyst at PVM Oil Associates, said.
U.S. Treasury yields fell on Thursday as concern about a
strong pick-up in inflation eased and focus turned to an auction
of 30-year government debt. The dollar is at its lowest level in
a week.
Varga added that the massive draw on U.S. gasoline stocks
has also helped to boost oil prices.
"(It) implies that refiners' crude intake will keep growing,
reversing the recent stock builds we have seen in the last three
weeks due to Winter Storm Uri."
U.S. gasoline stocks fell by 11.9 million barrels in the
week to March 5 to 231.6 million barrels, the Energy Information
Administration (EIA) said, compared with expectations for a 3.5
million-barrel drop.​ EIA/S
Crude inventories, however, rose by 13.8 million barrels in
the week to March 5 to 498.4 million barrels, compared with
analysts' expectations in a Reuters poll for an 816,000-barrel
rise, as the nation's oil industry continued to feel the effects
of a winter storm mid-February that stalled refining and forced
production shut-ins in Texas.
Globally, stocks also remain ample with crude oil in storage
at major land and sea hubs rising last week, according to
analysts and ship trackers. As the pace of inoculations picks up, several states such as
North Carolina and California have moved to relax COVID-19
restrictions. Meanwhile, the U.S. House of Representatives gave final
approval on Wednesday to one of the largest economic stimulus
measures in American history, a sweeping $1.9 trillion COVID-19
relief bill that gives President Joe Biden his first major
victory in office.