Oil prices steady after falling to more than one-week lows

TOKYO, July 17 (Reuters) - Oil steadied after falling more
than 3% overnight, with U.S. crude trailing Brent after U.S.
inventory data fell short of expectations, amid conflicting
signals from the U.S. and Iran over the disputes that have
roiled prices recently.
Brent crude futures LCOc1 were up 16 cents at $64.51, or
0.3% by 0027 GMT. They ended 3.2% down the previous session,
after falling to the lowest since July 5.
West Texas Intermediate crude futures CLc1 were up 1 cent
at $57.63. They fell 3.3% on Wednesday, having fallen to the
lowest since July 9.
Iran denied it was willing to negotiate over its ballistic
missile program, contradicting a claim by U.S. Secretary of
State Mike Pompeo, and appearing to undercut Trump's statement
that Washington had made progress on its disputes with
Tehran. Tensions between the United States and Iran over Tehran's
nuclear program have lent support to oil futures, given the
potential for a price spike should the situation deteriorate.
But U.S. crude stocks fell less than expected last week,
suggesting production shut-ins caused by Hurricane Barry had
little affect on inventories.
Crude inventories fell by 1.4 million barrels in the week to
July 12 to 460 million, industry group the American Petroleum
Institute said on Tuesday. That compared with analysts'
expectations for a decrease of 2.7 million barrels.
Gasoline stocks fell by 476,000 barrels, compared with
analysts' expectations in a Reuters poll for a 925,000-barrel
decline.
Distillate fuels stockpiles, which include diesel and
heating oil, rose by 6.2 million barrels, compared with
expectations for a 613,000-barrel gain, the API data showed.
Official data is due out later today from the U.S.
government's Energy Information Administration.
Still, more than half the daily crude production in the U.S.
Gulf of Mexico remained offline on Tuesday in the wake of
Hurricane Barry, the U.S. drilling regulator said, as most oil
companies were re-staffing facilities to resume production.
Bureau of Safety and Environmental Enforcement said 1.1
million barrels per day of oil, or 58% of the region's total,
and 1.4 billion cubic feet per day of natural gas output
remained shut.