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Brent crude futures fell 73 cents, or 0.76%, to $95.58 a barrel
by 0928 GMT.
U.S. West Texas Intermediate crude futures were down 64 cents,
or 0.71%, at $89.86.
Both contracts slipped by more than $1 a barrel earlier in the
session.
Oil flows to central Europe via the Druzhba pipeline will resume
shortly after Hungarian energy group MOL transferred the transit
fee for use of the Ukrainian section of the pipeline, MOL said
on Wednesday.
Demand fears also weighed on prices, analysts said.
"Fears of recession-induced demand destruction are the
single-biggest price driver currently and the principal reason
why Brent is trading sub-$100 a barrel," said PVM analyst
Stephen Brennock.
The consumer price index (CPI) report, due to be released at
1230 GMT on Wednesday, will be scrutinised for a steer on how
steeply the U.S. Federal Reserve will raise interest rates in
the coming months.
The report is likely to show that underlying inflation pressures
remain elevated as the Federal Reserve considers whether to
embrace another supersized interest rate increase in September,
which could curb economic activity and fuel demand.
U.S. crude oil stocks, meanwhile, rose by about 2.2 million
barrels for the week ended Aug. 5, according to market sources
citing American Petroleum Institute (API) figures. Analysts
polled by Reuters had forecast that crude inventories would rise
by about 100,000 barrels. [API/S] [EIA/S]
Official government data is due later on Wednesday.
Though concerns over a potential global recession have weighed
on oil futures recently, U.S. oil refiners and pipeline
operators expect energy consumption to be strong for the second
half of 2022, according to a Reuters review of company earnings
calls.
(Reporting by Rowena EdwardsAdditional reporting by Emily Chow
in Kuala LumpurEditing by David Goodman)
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