By Barani Krishnan
NEW YORK (Reuters) - Oil prices fell more than 1 percent on Wednesday after the second-biggest weekly draw in U.S. gasoline this summer was countered by an unseasonal growth in crude stockpiles.
U.S. crude inventories rose unexpectedly for a third straight week, gaining 1.1 million barrels in the week ended Aug. 5, compared with analysts' expectations for a 1 million-barrel draw, the U.S. Energy Information Administration (EIA) said.
U.S. gasoline stocks fell 2.8 million barrels in the second-biggest weekly draw since mid-April, compared with expectations for a 1.1 million-barrel drop.
Oil prices gyrated in minutes after the EIA data, reflecting uncertainty in direction after the mixed data. They eventually turned lower, with the crude build leading bearish sentiment.
U.S. West Texas Intermediate (WTI) crude futures fell 68 cents, or 1.6 percent, to $42.09 per barrel by 11:20 a.m. EDT (1520 GMT). It had rallied by as much earlier to a session high of $43.39.
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Brent crude futures fell 60 cents, or 1.3 percent, to $44.38 per barrel.
"We do feel that any further strength in the spot price will be met with selling," said Tariq Zahir, trader in crude oil spreads at Tyche Capital Advisors in New York.
"At this time of year, we should be drawing down in crude inventories and we are still building."
U.S. gasoline futures fell 2.4 percent, after initially gaining 1 percent.
(Additional reporting by Ahmad Ghaddar in LONDON and Henning Gloystein in SINGAPORE; Editing by Marguerita Choy and Jeffrey Hodgson)