--Crude eases following Tuesday's sharp rally as no concrete euro-zone plan has yet emerged --Europe developments seen key driver Wednesday, with risks remaining of further losses --US DOE oil inventory report may also give short-term price direction By Sarah Kent Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Crude futures were little changed to weaker Wednesday as traders continued to eye the stock markets and currency moves for direction. Prices defended the steep gains made in a rally Tuesday amid rumors that politicians were preparing to take action to contain the euro-zone debt crisis, but investors were unwilling to push prices higher without signs of concrete agreement. "We're seeing a little bit of a counter-reaction to the strong run up we saw over the last couple of days," said Ole Hansen, manager of the futures and fixed income trading desk at Saxo Bank. "It's been rumor driven and now we need to see some facts," he added. At 1018 GMT, the front-month November Brent contract on London's ICE futures exchange was 3 cents lower at $107.11 a barrel. The front-month November contract on the New York Mercantile Exchange was trading down 8 cents at $84.37 per barrel. Analysts said developments in the euro zone were likely to remain the key focus Wednesday. Risks that current weakness in the market will increase are high, amid reports that division is emerging within the euro zone over the methods needed to help Greece through its funding crisis, they added. "Without official statements to support yesterday's rumors concerning potential longer term solutions to the euro zone crisis the consequent optimism stands on loose ground," said SEB Commodity Research in a note. Crude inventory data from the U.S. Department of Energy, due at 1430 GMT, could also provide a cue for the market, offering hints on the possible short-term price direction, said London Capital Group in a note. According to a Dow Jones Survey of analysts, crude oil stocks are expected to have risen 700,000 barrels last week, while gasoline stocks are seen rising by 900,000 barrels and distillate stocks, which include diesel fuel and heating oil, are expected to increase by 100,000 barrels. However, the overall impact of the data may be muted by the market's current focus on the macro-economic picture, analysts said. "Right now if there is a plus number it will probably have a bigger impact than a minus number because the market is in slow-down mode at the moment," said Hansen at Saxo Bank. Anything that confirms the prevailing mood will probably help shift prices, he added. At 1022 GMT, the ICE's gasoil contract for October delivery was up $5.75, or 0.6%, at $912.50 per metric ton, while Nymex gasoline for November delivery was 6 points lower at $2.6354 per gallon. Volumes are lower on the front month October gasoline contract, which is due to expire Friday. -By Sarah Kent, Dow Jones Newswires; 4420-7842-9376; sarah.kent@dowjones.com

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