Brent crude oil futures fell 21 cents, or 0.3%, to $82.95 a barrel by 0020 GMT. U.S. West Texas Intermediate crude futures fell 13 cents, or 0.2%, to $78.25 a barrel.
U.S. crude inventories increased by 509,000 barrels in the week ended May 3, market sources said, citing figures from the American Petroleum Institute. Stocks of gasoline and distillates also increased, they said.
Official US government inventory data is due at 2:30 p.m. GMT. Analysts polled by Reuters expect U.S. crude oil inventories to have fallen by about 1.1 million barrels last week. [EIA/S]
Both benchmarks fell slightly in the previous session on signs of easing supply tightening. The EIA updated its forecast for 2024 and now expects global oil and liquids production to increase more than expected this year and demand to increase less than previously thought. [EIA/M] Hopes for a ceasefire in Gaza have also put pressure on oil prices in recent sessions. The United States believes that negotiations on a ceasefire in Gaza should help bridge the gaps between Israel and Hamas. The director of the US Central Intelligence Agency, Bill Burns, will travel to Israel on Wednesday for talks with Israeli Prime Minister Benjamin Netanyahu and other senior officials, a source familiar with the matter told Reuters. Also weighing on oil, the US dollar rose slightly on Wednesday. A stronger greenback dampens demand for oil by making it more expensive for investors holding other currencies.
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