(Adds U.S. inventory data, analyst comment, updates prices)
By Jane Merriman
LONDON, May 14 (Reuters) - Oil edged up from session lows on
Wednesday, after crude oil stocks rose less than expected in top
consumer the United States.
The latest weekly U.S. fuel inventory data was mixed, with a
rise in crude oil and distillate stocks, but a surprise fall in
gasoline.
U.S. light crude for June delivery <CLc1> was down 45 cents
at $125.35 a barrel by 1515 GMT. It has hit a string of record
highs over the past week and reached a peak of $126.98 a barrel
on Tuesday.
London Brent crude <LCOc1> was down $1.25 at $122.85 a
barrel.
"Crude runs were up more than expected and imports were
down, leading to the small build in crude stocks," said Tim
Evans, energy analyst at Citi Futures Perspective.
"The gasoline draw was a bit more than expected on a drop in
imports. Overall, this is a mixed set of data, but we'd watch
the heating oil price for a reaction to the build."
The U.S. Energy Information Administration reported a rise
of 200,000 barrels in crude oil stocks last week, less than the
1.8 million barrel increase forecast by analysts.
Distillates rose 1.4 million barrels, more than the 800,000
increase analysts had predicted.
Gasoline stocks fell by 1.7 million barrels, when analysts
had looked for no change. []
DISTILLATES
Perceptions that supplies of distillates such as heating oil
and diesel fuel are tightening helped drive U.S. heating oil
futures <HOc1> to a record of $3.6989 a gallon on Tuesday, which
boosted the entire oil complex.
"Distillates are clearly driving the market," said Marc
Lansonneur, Societe Generale's head of commodities derivatives
in Asia.
European middle distillate stocks fell sharply in April to
361.28 million barrels, down 1.4 percent from March and 7.2
percent lower than a year ago, data from industry monitor
Euroilstock showed on Tuesday. []
Earlier, an assurance from Iran that it had no plans to cut
oil exports had cooled down the market.
Prices had surged to a new record of nearly $127 on Tuesday
after Iranian President Mahmoud Ahmadinejad had said a proposal
to cut crude output was under review.
A top Iranian official said on Wednesday Tehran is
continuing sell oil to international customers as usual and has
no plans to cut exports to world markets. []
"There is no plan to cut exports and we keep our promises
(to clients) ... and we export as usual," said Hojjatollah
Ghanimifard, executive director of international affairs at
National Iranian Oil Company.
Concern in the oil market that Tehran's dispute with the West
over its nuclear programme may lead to a disruption in its crude
exports have helped drive oil to record highs.
(Additional reporting by Maryelle Demongeot in Singapore and
Chikafumi Hodo in Tokyo; editing by James Jukwey)
