SINGAPORE - Oil prices edged down below $105 a barrel on Thursday, after surging almost $4 in the previous session after the sharp drawdown in refined fuel but a large build in crude stocks in the United States.

U.S. crude fell 31 cents to $104.52 a barrel by 3:23 a.m. EDT, while London Brent crude shed 38 cents at $103.37 a barrel.

Gasoline inventories in the United States tumbled 4.5 million barrels last week, data from the U.S. Energy Information Administration (EIA) showed, a much steeper fall than analyst forecasts of a 2 million-barrel decline.

Distillate stocks fell by 1.6 million barrels.

The drawdown in refined fuels came as the world's top oil consumer gears up for summer vacation season, when fuel demand usually peaks.

U.S. crude stocks jumped 7.4 million barrels last week, the largest build since March 2004, as imports rose and demand from domestic refiners remained low.

"The U.S. EIA's weekly petroleum status report contained mixed news from an oil market perspective, but was received bullishly by the oil market," said David Moore, a commodities analyst at the Commonwealth Bank of Australia, in a note.

Some analysts said the crude stock build, partially reflecting the abundant supply that the United States was getting, would eventually weigh down oil prices since demand was expected to remain weak given the sluggish U.S. economy.

Also supporting crude's surge, the dollar fell after Federal Reserve Chairman Ben Bernanke conceded for the first time that the U.S. economy may fall into recession in the first half of 2008.