UPDATE 5-Oil dips after surprise increase in US inventories
* U.S. first quarter growth cut to 1.8 percent
* U.S. crude stocks rise after forecasts of strong draw
* ECB President Draghi sees recovery by year end
(Recasts with EIA data, updates prices)
LONDON, June 26 (Reuters) - Oil prices slumped on Wednesday after data showed an unexpected rise in U.S. crude stocks, which combined with earlier disappointing economic data to stoke concerns about the outlook for demand in the world's top consumer.
Brent crude for August delivery was down 76 cents at $100.50 a barrel by 1355 GMT. U.S. crude was down $1.32 to $94.00 a barrel.
Weekly crude stocks rose 18,000 barrels to 394.14 million barrels, according to the Energy Information Administration (EIA), while analysts surveyed by Reuters had forecast a draw of 1.7 million barrels.
Supplies increased in Cushing, Oklahoma, the delivery point for the U.S. benchmark crude, further weighing on prices.
The figures contrast with data from the American Petroleum Institute on Tuesday that showed a drop in inventories.
Gasoline stocks in the heavily populated East Coast also rose sharply, reaching their highest level since February 2012.
"We saw the API data yesterday, and now the data points to weak demand and plenty of supply. That's bad for oil," said Michael Hewson, an analyst at CMC Markets.
Figures earlier in the day showed that U.S. growth in the first quarter was less than expected, held back by a moderate pace of consumer spending, weak business investment and declining exports.
The weak data had initially pushed oil prices slightly higher by reducing fears that the Federal Reserve would roll back its monetary easing programme sooner rather than later.
The Brent benchmark is down 8.5 percent for the quarter, its third quarterly loss in a row, having dropped after Fed Chairman Ben Bernanke last week laid out a roadmap to slow its pace of bond buying and on concerns over economic slowdown in China.
Also supporting prices, European Central Bank President Mario Draghi said on Wednesday the ECB was nowhere near exiting its accommodative monetary policy, while seeing gradual recovery in the region by the end of the year.
Deutsche Bank lowered its projections for oil prices in the second half of 2013, with Brent set to average $106 a barrel and the U.S. benchmark forecast to average $96 a barrel.
"Prospects for loose fundamentals to persist combined with a bullish U.S. dollar outlook have prompted us to lower our price decks," the bank said in a report.
(Additional reporting by Luke Pachymuthu; Editing by Anthony Barker and Jane Baird)