By Meeyoung Cho
SEOUL, Aug 27 (Reuters) - Oil prices climbed early on Thursday on an unexpected fall in U.S. crude inventory last week, but a stronger dollar dragged.
U.S. crude's front-month contract CLc1 had risen 59 cents to $39.19 a barrel by 0115 GMT, after settling down 71 cents, or 1.8 percent, at $38.60 a barrel on Wednesday.
Front-month Brent LCOc1 , the global oil benchmark, gained 64 cents to $43.78 a barrel, having ended down 7 cents at $43.14.
"The local region is ... shrugging off some of the currency impact, instead pricing in the draws on inventory and a better than expected industrial outlook," said Michael McCarthy, chief market strategist at CMC Markets in Australia.
U.S. crude inventories USOILC=ECI fell 5.5 million barrels in the week to Aug. 21, the biggest one-week decline since early June, data from the Energy Information Administration showed on Wednesday. That was in line with the industry group the American Petroleum Institute's late-Tuesday report. EIA/S API/S
Analysts had expected an increase of 1 million barrels.
In other financial markets, a rebound on Wall Street helped soothe investors' tattered nerves, while the dollar rallied as risk aversion eased. MKTS/GLOB
Data released on Wednesday showed U.S. non-defence capital goods orders excluding aircraft increased 2.2 percent in July, the biggest rise since June last year and handily beating expectations. ECONUS