Oil prices steadied on Thursday, as a U.S. government report of larger-than-expected draws in diesel and gasoline helped prices rebound from losses after data showed the first crude inventory build in six weeks.
Crude prices fell when the Energy Information Administration (EIA) said U.S. crude stocks swelled 4.9 million barrels in the week ended Oct. 7, much more than the 700,000 barrels forecast by analysts polled by Reuters.
Prices bounced back as the market turned its attention to product inventory drawdowns in the same EIA data. The EIA reported a drop of 3.7 million barrels for distillates, which include diesel and heating oil, and 1.9 million barrels decline for gasoline.
Analysts had expected distillates to draw by just 1.6 million barrels and gasoline to decline by 1.5 million.
U.S. gasoline futures were up about 1.3 percent at $1.4804.