LONDON, Nov 28 (Reuters) - Oil prices tilted lower on Wednesday after weekly data from the United States showed inventories rising and demand slowing.

U.S. stocks of gasoline and heating oil swelled sharply last week as high refinery production and lower demand piled up surplus fuel, the American Petroleum Institute (API) said in a report released after the close of business on Tuesday.

Brent crude traded in London fell 24 cents to $18.78 a barrel.

Temperatures in the West heading into winter have been milder than normal so far this year, reducing demand for heating fuel.

U.S. stocks of distillate, including heating oil and diesel fuel, rose 4.98 million barrels to 134.1 million in the week ended November 23, building the surplus from this time last year to 17.3 million, the API said.

"You've got higher production and higher imports which together are squashing the price," said Jan Stuart, analyst with ABN Amro bank. "Refiners have been running hard and flooded the market."

Distillate stocks in the key U.S. Northeast consuming region rose 2.96 million barrels to 58.7 million, some 42 percent above the same time last year, the API said.

Weather Services Corporation forecast that mild temperatures in the Northeast will continue for the next 10 days.

U.S. gasoline demand in the week of Thanksgiving slipped to 8.47 million bpd from more than 8.5 million for much of November.

UNCERTAINTY OVER RUSSIA CUT, IRAQ

Preventing further price declines were hopes that Russia will join other major producers to slice output from the beginning of next year.

Moscow is due to decide soon how much it will cut in response to a call from OPEC for cooperation on supply curbs. Deputy Prime Minister Viktor Khristenko said on Tuesday that Russia would make deeper cuts than the token 50,000 bpd offered for the fourth quarter.

OPEC has said it will slash supplies by 1.5 million barrels a day from January contingent on non-OPEC exporters Russia, Norway and Mexico and Oman reciprocating with curbs totalling 500,000 bpd.

Mexico has offered 100,000 bpd and Oman at least 25,000 bpd. Norway says it will do 100,000-200,000 bpd depending on Russia's response.

Norwegian Oil Minister Einar Steensnaes told Reuters on Tuesday that "under strict arithmetic Russia should cut 200,000 bpd" for non-OPEC nations to reach 500,000 bpd. "But this is more than arithmetic, it's about politics," he said.

"Russia as the world's second largest exporter must contribute with an amount that stresses Russia's position," he said. "Without going into amounts, I'd point out that the Norwegian production cuts will be 100,000-200,000 (bpd) and Norway produces less than half of Russia."

Dealers also were keeping a close eye on progress at the United Nations on the renewal of sanctions against Iraq that include an oil-for-food exchange.

Russia and the United States on Tuesday reached a compromise agreement to renew the programme allowing Iraq to sell crude to buy humanitarian goods.

A resolution is expected on Thursday or Friday but is expected to include a commitment to conclude talks on a revision of sanctions in time for the next six-month renewal of the embargo on June 1, 2002.

Oil traders, concerned about a possible disruption of Iraqi exports, will be looking for Iraq's reaction to the vote.

"(Iraqi President) Saddam Hussein could take umbrage at the wording if he wanted but it would not be in his interest at the moment," said Lawrence Eagles of brokers GNI.

"It is therefore likely that the rollover of oil-for-food will be smooth, but traders should prepare for another confrontation next June."

While Iraq exports more than two million barrels daily, four percent of world oil trade, OPEC producers currently are holding more than five million bpd of spare capacity and could easily fill any gap left by Baghdad.