LONDON, Aug 6: World oil prices steadied on Wednesday as news of a surprise jump in US crude reserves was offset by a heavier-than-expected drop in motor fuel stockpiles, traders said.

Brent North Sea crude for September delivery eased 11 cents to $117.59 per barrel in electronic trading.

New York’s main contract, light sweet crude for September gained a marginal four cents to $119.62.

The US Department of Energy (DoE) said on Wednesday that American crude reserves increased by 1.7 million barrels in the week ending August 1.

The reading surprised the market because expectations had been for a 200,000-barrel decline.

However, the DoE added that motor fuel stockpiles plunged 4.4 million barrels last week. That was heavier than analysts’ consensus forecasts for a drop of 1.5 million.

Traders are closely tracking the level of US gasoline or petrol stockpiles amid the ongoing peak-demand driving season, when many Americans take to the roads for their holidays.

Oil prices had rebounded slightly in earlier trade on Wednesday after heavy falls the previous day. “Further support came from news that a Turkish pipeline, which carries crude from Baku to Ceyhan port on the Mediterranean, was shut down due to a fire blast,” added Sucden analyst Andrey Kryuchenkov.—AFP