In a process for converting oxygenated feedstock, such as methanol and dimethyl ether into liquid hydrocarbons, in which the feedstock is first contacted with a zeolite catalyst to produce C 2 -C 4 olefins and C 5 + hydrocarbons, and in which C, + oiefins are then contacted with oligomerization catalyst comprising medium-pore, shape-selective acidic zeolite at increased pressure to produce gasoline and/or distillate liquids, lower alkenes in the form of ethene and/or olefinic gasoline are recycled to the first catalyst stage.