* U.S. crude stocks fell more than expected last week - EIA
* Fed holds rates steady, signals cuts possible later this year
* OPEC, non-OPEC meetings over output deal set for July 1-2
* GRAPHIC-U.S. stockpiles: https://tmsnrt.rs/2XkQF8e (Updates prices and market activity to settlement, adds analyst comments)
By Laila Kearney
NEW YORK, June 19 (Reuters) - Oil futures were mostly steady on Wednesday as price support from a larger-than-expected decline in U.S. crude inventories was countered by a lull in equities.
Brent crude futures LCOc1 settled at $61.82 a barrel, shedding 32 cents, or 0.5%. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $53.76 a barrel, falling 14 cents, or 0.26%. On Tuesday, WTI had recorded its biggest daily rise since early January.
After swelling to near two-year highs, U.S. crude stocks fell 3.1 million barrels last week, compared with analysts' expectations for a draw of 1.1 million barrels, the Energy Information Administration (EIA) said. Refined products also posted surprise drawdowns due to a rise in refining and crude exports, as well as a drop in crude production.
Oil prices briefly turned positive after the EIA report.
"I think, overall, it was a positive report," said Phil Flynn, analyst at Price Futures Group in Chicago. "Even with the bullish report, after the big run-up yesterday, the market is hesitant to drive a lot higher."
A nearly flat day on Wall Street also limited oil prices, which often follow equities. .N
Equities held steady after the U.S. Federal Reserve's decision to hold interest rates steady, as expected, after concluding a two-day policy meeting on Wednesday. crude oil market is correlating to that," said Bob Yawger, director of energy futures at Mizuho in New York. "I don't think it's more than a sentiment thing along those lines."
Tensions remain high in the Middle East after last week's tanker attacks, which boosted oil prices. Fears of a confrontation between Iran and the United States have mounted, with Washington blaming Tehran, which has denied any role.
Trump said he was prepared to take military action to stop Iran having a nuclear bomb but left open whether he would approve the use of force to protect Gulf oil supplies.
Oil markets, however, largely shrugged off a rocket attack on a site in southern Iraq used by foreign oil companies, including U.S. energy giant ExxonMobil. people were wounded in the attack, which threatened to further escalate U.S.-Iran tensions in the region.
Members of the Organization of the Petroleum Exporting Countries agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates. and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of production that runs out this month.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ TECHNICALS-Brent oil may extend gains into $63.12-$64.22 range
TECHNICALS-U.S. oil may edge up to $54.81 before falling
GRAPHIC: U.S. crude inventories, weekly changes since 2017
https://tmsnrt.rs/2XlX17b
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