NYMEX-Oil prices drop below $96 after gasoline stocks jump

PERTH, May 22 (Reuters) - U.S. crude futures prices fell below $96 a barrel on Wednesday after an unexpected increase in U.S. gasoline stockpiles ahead of the summer driving season in the world's largest oil consumer. FUNDAMENTALS * U.S. July oil futures contract fell 44 cents to $95.74 a barrel by 0028 GMT. The June contract expired on Tuesday, settling 55 cents lower at $95.16 a barrel, while July ended 75 cents lower at $96.18. * Brent dropped 37 cents to $103.54 a barrel. * U.S. commercial crude oil stockpiles were expected to fall for a second consecutive week on higher refinery activity and lower imports, an extended Reuters poll of 11 analysts showed on Tuesday. * American Petroleum Institute said U.S. crude oil stocks rose by more than 500,000 barrels last week, trumping analyst expectations for them to fall, while gasoline stocks jumped by 3 million barrels. * Two senior Federal Reserve officials on Tuesday played down the chances that the U.S. central bank would signal a readiness to reduce its bond buying at its meeting next month, dampening speculation the Fed's ultra-easy monetary policy might end soon. * Reports that Lebanese Hezbollah guerrillas were involved in fierce fighting in Syria prompted alarm that the civil war may spread to neighbouring countries. * South Sudan has almost halved its oil production as it faces new "problems" exporting crude to Sudan, it said on Tuesday, suspecting its long-time rival had closed a cross-border pipeline, a move that would be a sign of friction. MARKETS NEWS * U.S. stocks rose on Tuesday, with the Dow and the S&P 500 closing at new all-time highs as Federal Reserve officials' comments eased some concerns that the central bank could start reducing its stimulus program. * The dollar edged down against the yen in early Asian trade on Wednesday, moving away from last week's 4-1/2-year high against the Japanese currency, after comments from two U.S. Federal Reserve regional presidents suggested the central bank will continue its bond-buying scheme. DATA/EVENTS * The following data is expected on Wednesday: N/A Bank of Japan announces monetary policy decision 0800 Euro zone Current account 1400 U.S. Existing home sales 1400 Federal Reserve Chairman Ben Bernanke testifies on economic outlook before U.S. congressional committee 1430 U.S. EIA weekly crude stocks 1800 FOMC releases minutes of April 30-May 1 meeting (Reporting by Rebekah Kebede; Editing by Ed Davies)