year highs reached earlier this summer. Data due on Wednesday is expected to show U.S. crude stocks fell last week, while stocks of distillates, including heating oil and diesel, are forecast to have risen 1.6 million barrels, according to a Reuters survey. Distillate demand typically peaks during the Northern Hemisphere winter, but strong summer demand for fuel this year has limited refiners' ability to lift stockpiles from below-average levels. "The key demand-side driver remains U.S. distillate demand, which continues to grow at a robust rate," Barclays Capital wrote. U.S. diesel demand is running more than 6 percent above year-ago levels, official data showed last week. Oil has also found support from the victory in Iran's presidential election by conservative Mahmoud Ahmadinejad, who has vowed to press on with a nuclear program opposed by Washington. --More 2253 Local Time 1953 GMT
