UPDATE 7-Brent oil inches up, gasoline slips
* U.S. Fed expects to scale back stimulus later this year
* Coming up: Fed Chief testimony; 1400 GMT
(Updates prices and market activity, changes dateline from London)
NEW YORK, July 17 (Reuters) - Brent crude inched higher on Wednesday while gasoline prices fell slightly after the Energy Information Administration reported further draws in American crude stockpiles and larger-than-expected increases in gasoline inventories.
The EIA's weekly petroleum data showed a 6.9 million barrel decrease in American crude stockpiles, extending declines over the last three weeks to more than 27 million barrels, the biggest three week decline on record.
The drop came as imports of crude remained under pressure, sending oil prices up in the minutes after the report, even as the data put pressure on gasoline futures.
Gasoline stockpiles declined after the EIA reported a large 3 million barrel build in U.S. inventories. Futures prices came off a four-month high hit on Tuesday.
Brent crude traded up 24 cents to $108.38 a barrel at 12:48 p.m. EDT (1648 GMT).
West Texas Intermediate gained 3 cents to trade at $106.03 a barrel. RBOB gasoline fell for the first time in three days, down 0.33 percent to $3.12 a gallon.
Technicians have said that both WTI and RBOB were looking poised for a correction, as both contracts have traded over 70 on the relative strength index (RSI) in recent sessions, a level generally seen as a sign a commodity has been overbought.
Analysts said that Federal Reserve Chairman Ben Bernanke's lukewarm comments on the central bank's plans to roll back its economic stimulus did not move the market.
"For now, the reaction in the oil market is pretty muted," said Oliver Jakob of Petromatrix in Zug.
"There's no big change in Bernanke's prepared comments. It's still all about a potential reducing of bond buying by the end of the year.
Investors remain concerned about interruptions to supplies from major exporters such as Libya. Armed protesters stormed the eastern Libyan oil port of Zueitina demanding export operations be halted, a witness said.
(Additional reporting by Manash Goswami in Singapore; editing by James Jukwey and Andrew Hay)