Oil steadies after three-day gains

LONDON, Oct 17 (Reuters): Oil prices steadied after three days of gains on Wednesday after industry data showed a surprise decline in US crude inventories and tension over the disappearance of a prominent Saudi journalist stoked supply worries.

Brent crude was down 10 cents at $81.31 a barrel by 0945 GMT, after gaining $1.15 in the previous three sessions.

The global benchmark, which hit a two-week low last week as equity markets dropped, is trading around $5 below a four-year high of $86.74 reached on Oct 03.

US light crude oil was down 20 cents at $72.02.

"Numbers from the American Petroleum Institute surprised the market (on Tuesday), with US crude oil inventories declining by 2.13 million barrels over the last week, compared to expectations of a stock build," said ING commodities strategist Warren Patterson.

A Reuters survey ahead of the API data had estimated crude stocks rose about 2.2 million barrels.

US gasoline stocks dropped by a larger-than-expected 3.4 million barrels, while distillate fuel stockpiles declined by a smaller-than-expected 246,000 barrels, the API data showed.

Inventory data from the US Energy Department's Energy Information Administration is due at 1430 GMT on Wednesday.

Also underpinning sentiment is the scandal over the disappearance of prominent Saudi critic and journalist Jamal Khashoggi, who disappeared two weeks ago after entering the Saudi consulate in Istanbul.