Prices were holding steady after weekly data from the American Petroleum Institute (API) on Tuesday showed a bigger than expected fall in gasoline inventories.

API said gasoline stocks in the week ended October 29 were lower by 3.8 million barrels, much larger than market expectations of a 2,50,000-barrel decline.

Traders said the gasoline data would support oil prices and help offset a rise in crude stocks of 1.4 million barrels. But they said the data did not offer enough clues on oil price direction to take decisive action in the market.

They said they would look for further clues from the release of the United States Department of Energy's stock data later on Wednesday. Both sets of data are watched closely by oil experts because the United States consumes a fifth of the world's oil.

Opec is hoping the stocks will move down to reflect the supply cuts that the oil cartel has in place until next March. However, the latest API data represents the third successive week that crude stocks have risen.

The market remains bullish for the fourth quarter,expecting Opec's supply cuts and rising demand to combine to drive prices higher. But prices have been volatile in the past week and still far from the 32-month peak of $25.12 traded for US crudes in late September.

Traders said they are also waiting for the publication of surveys, expected in the next week, on Opec's production in October to gauge how well the grouping is maintaining its output discipline.