HOUSTON, Aug 14 Reuters Oil prices slipped on Wednesday after U.S. crude inventories rose unexpectedly and as worries eased slightly that a wider Middle East conflict could threaten production in one of the world39;s major regions for crude production.

Brent crude futures were down 31 cents, or 0.4, to 80.38 a barrel by 100 p.m. ET 1700 GMT. U.S. West Texas Intermediate crude futures fell 72 cents, or 0.9, to 77.62 per barrel.

U.S. crude inventories rose by 1.4 million barrels, compared with estimates for a 2.2 million barrel drop, data from the U.S. Energy Information Administration showed. The build was the first after six straight weeks of draws.

That six week draw was a pretty impressive but that39;s in the rearview mirror. The fact that we snapped the streak should weigh on prices a little bit, said Robert Yawger, director of energy futures at Mizuho in New York.

Gasoline and distillate inventories fell more than expected.

American Petroleum Institute figures on Tuesday had pointed to a 5.21 million barrel drop last week.

Brent had risen more than 3 on Monday to cap a fiveday run of gains, closing at 82.30 a barrel, after hitting a sevenmonth low of 76.30 at the beginning of last week.

Iran had vowed a severe response to the killing of the leader of Hamas late last month. Three senior Iranian officials have said that only a ceasefire deal in Gaza would hold Iran back from direct retaliation against Israel for the assassination.

TIGHTER SUPPLIES

Israel has…