* Oil jumps nearly 3 pct, Goldman says market in deficit
* Yen dips vs dollar, euro edges up
* Energy sector leads Wall St higher
* Irish yields lowest in over a month; Moody's ups rating (Updates with U.S. markets, changes comments, dateline from previous LONDON)
By Rodrigo Campos
NEW YORK, May 16 (Reuters) - Crude futures hit a six-month high on Monday as output disruptions were expected to eat into a long-standing glut in the market, while higher commodity prices boosted basic materials and energy shares.
The benchmark U.S. Treasury yield rose after matching a one-month low hit Friday and the dollar ticked lower, caught between a weaker yen and a stronger euro.
Supply disruptions in Nigeria, Canada and Venezuela have most likely pushed oil production below consumption levels in May for the first time in at least two years. That means the world has started eating into the huge piles of oil that knocked as much as 70 percent off crude prices between 2014 and early 2016.
The energy sector led Wall Street higher after the S&P 500 closed a third week of losses on Friday. Apple AAPL.O , up 3.03 percent at $93.27, also gave U.S. stocks support.
The Dow Jones industrial average .DJI was up 121.32 points, or 0.69 percent, to 17,656.64, the S&P 500 .SPX gained 14.01 points, or 0.68 percent, to 2,060.62 and the Nasdaq Composite .IXIC added 41.56 points, or 0.88 percent, to 4,759.24.
The pan-European FTSEurofirst 300 share index .FTEU3 was little changed. Volume was constrained with the Frankfurt Stock Exchange among European bourses that were closed for a holiday.
MSCI's gauge of stocks across the globe .MIWD00000PUS rose 0.6 percent.
U.S. Treasury yields rose as prices fell despite a weaker-than-expected reading in the New York Fed manufacturing survey, as traders focused on the gains in the oil market.
"A lot of the overnight data has been kind of weak and people have just roundly ignored it," said Aaron Kohli, interest rates strategist at BMO Capital Markets in New York.
"Everyone was just focusing on crude this morning."
Irish yields IE10YT=TWEB touched the lowest in more than a month after Moody's Investor Services raised its credit rating to A3 from Baa1. It maintained a positive outlook on Ireland, which entered a three-year international bailout in 2011.
Oil prices rose more than 3 percent. Goldman Sachs (NYSE:GS) said disruption to supply had seen the market flip into deficit and U.S. crude CLc1 could trade as high as $50 per barrel in the second half of 2016. crude LCOc1 hit $49.47 per barrel, its highest price since early November. The international benchmark, which has risen nearly 80 percent from lows touched in January, last traded at $49.04, up 2.5 percent on the day.
U.S. crude CLc1 was up 2.9 percent at $47.56.
Over the weekend, Chinese data showed retail sales, factory output and fixed-asset investment all fell short of forecasts by economists polled by Reuters. numbers were not enough to prevent Chinese shares rising on Monday, however. The blue-chip CSI300 index .CSI300 closed up 0.66 percent and the Shanghai Composite .SSEC 0.84 percent.
The yen JPY= edged down 0.23 percent to 108.85 per dollar and the euro EUR= rose 0.21 percent to $1.1329. The greenback was marginally lower against a basket of major currencies .DXY , having touched a three-week high on Friday.
Copper CMCU3 rose 0.8 percent to $4,666 per tonne, having hit a near three-month low on Friday.
Spot gold XAU= rose 0.11 percent to $1,274.61 an ounce.