* China currency revaluation may boost commodity demand * Equities climb after China's currency move, lifts oil * Coming up: Federal Reserve 2-day meeting starts Tuesday NEW YORK, June 21 (Reuters) - U.S. crude oil futures rose more than $1 on Monday after China's move to allow more flexibility in its currency lifted prices on the expectation China's oil demand growth will rise. China's yuan surged on Monday, the biggest one-day move since its landmark revaluation in 2005. [ID:nN20208975] For the oil market, the immediate implication was the prospect that the yuan strengthening against the dollar will make dollar-denominated commodities such as crude oil less expensive for China's oil-thirsty economy. World stocks hit a five-week high after China's actions on the yuan. MSCI world equity index .MIWD00000PUS rose 1 percent, hitting its highest level since mid-May. [MKTS/GLOB] U.S. stocks rose at the open in New York, with the S&P 500 index moving above a key resistance level at 1,130. [.N] The U.S. Federal Reserve's Federal Open Market Committee two-day meeting starts Tuesday. Markets will get another indication about the Fed's intent to keep low interest rates and other economic stimulus measures in place. Technical strength also was a factor for oil futures, trading sources said, after crude futures ended last week above the 200-day moving average. "Equities are raging, lifting all ships. Also, the (crude) market finished above the 200-day moving average last week," said Stephen Schork, president at the Schork Group in Villanova, Pennsylvania. PRICES * On the New York Mercantile Exchange at 9:55 a.m. EDT (1355 GMT), July crude CLN0 was up $1.49, or 1.93 percent, at $78.67 a barrel, trading from $77.33 to $78.92. * The NYMEX July crude contract expires on Tuesday. As of Friday, open interest positions stood at only 62,256. * The $64.24 intraday low on May 20 was the weakest NYMEX front-month price since $62.76 was struck on July 30, 2009. The 2010 peak of $87.15 was struck on May 3. * In London on the Intercontinental Exchange, August Brent crude LCOQ0 rose $1.38, or 1.76 percent, to $79.60 a barrel, trading from $78.49 to $79.86. * NYMEX July RBOB RBN0 rose 3.24 cents, or 1.51 percent, to $2.18 a gallon, trading from $2.1531 to $2.1930. * NYMEX July heating oil HON0 rose 3.84 cents, or 1.8 percent, to $2.1673 a gallon, trading from $2.1321 to $2.1725. * The July/July heating oil crack spread <0#CL-HO=R> was at $12.34 a barrel. The spread ended Friday at $12.23. The July/July RBOB crack spread <0#RB-CL=R> was at $13.03. The spread ended Friday at $13.02. * The spread between the current front month and the five-year forward crude contract CLc61 was at $10.22, based on the July 2015 contract Friday settlement at $88.89. The spread ended on Friday at $11.71. TECHNICALS NYMEX crude 10-day/20-day moving average: $75.76/$73.98 Technical support/resistance: NYMEX crude: $76.86/$83.13 NYMEX heating oil: $2.0875/$2.1703 NYMEX RBOB: $2.1044/$2.1908 For a full report on technicals, click on [ID:nLDE65K15Z] MARKET NEWS * China's diesel exports in May hit a record high and gasoline exports rose 73 percent year on year, official customs data showed. [ID:nTOE65K042] * Copper prices soared as China's currency move raised hopes of stronger demand growth. [MET/L] * Iran barred two U.N. nuclear inspectors, adding to tension after Tehran was recently hit by new U.N. sanctions over its nuclear program. [ID:nLDE65K1CO] * Russia cut gas supplies to Belarus by 15 percent pressing its neighbor to pay a $192 million debt and raising fears of disruptions in deliveries to Europe. [ID:nLDE65K031] (Reporting by Robert Gibbons)

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