* Oil erases most of Tuesday's gain, the largest since April
* EIA reports 2.2 mln bbl US crude draw vs 3 mln bbl forecast
* Biggest US diesel build since Jan; surprise gasoline build
* Oil stocks continue to dampen prices - IEA (New throughout, updates with settlements)
By Barani Krishnan
NEW YORK, July 13 (Reuters) - Oil markets tumbled more than 4 percent on Wednesday, erasing most of the previous session's gain, as a raft of bearish U.S. inventory data heightened concerns over a global glut.
U.S. crude stockpiles fell less than expected last week, distillate inventories rose the most since January and gasoline posted a surprise build, the Energy Information Administration said, painting an unusually weak demand picture during the traditionally busy summer driving season. EIA/S
The EIA's report pressured prices in a market already bearish after the world's energy watchdog the International Energy Agency warned about a global oil supply glut, saying that crude stockpiles kept rising last month and had pushed floating storage to the highest level in seven years. surprising build in gasoline in the peak of U.S. driving season and a very large build in heating oil will set the tone for lower prices as we go forward," said Tariq Zahir, a trader in crude oil spreads at Tyche Capital Advisors in New York.
"The products markets will continue to put weakness in the energy complex."
Brent crude LCOc1 settled $2.21, or 4.6 percent, lower at $46.26 a barrel, and U.S. crude CLc1 fell $2.05, or 4.4 percent, to end at $44.75.
On Tuesday, both Brent and WTI gained nearly 5 percent, their biggest daily gain since April, on shortcovering and technical buying a day after hitting two-month lows.
U.S. gasoline RBc1 settled nearly 4 percent lower, while heating oil HOc1 , a proxy for ultra low sulfur diesel, slumped more than 5 percent.