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Brent crude futures , which have risen by almost 3% this week,
were down 30 cents, or 0.40%, at $75.02 a barrel at 1026 GMT.
U.S. West Texas Intermediate (WTI) crude futures were down 29
cents, or 0.42%, at $69.38.
Data from the American Petroleum Institute on Tuesday called
demand into question after it showed an unexpected rise in U.S.
crude inventories last week, sources said, defying analyst
estimates of a decline.
Official data from the Energy Information Administration, the
statistical arm of the U.S. Department of Energy, is due at
10:30 a.m. (1430 GMT) on Wednesday.
Further price weakness followed an unexpected rise in UK
inflation in February, raising fears of further interest rate
hikes a day before the Bank of England announces its latest
interest rate decision.
The market will be seeking direction from the U.S. Fed's Federal
Open Market Committee (FOMC), which announces its decision on
interest rates at 1800 GMT.
The expected rate hike of 25 basis points is a turnaround from
the steep 50 basis point rate rise anticipated before the recent
banking turmoil, triggered by the collapse of two regional
banks.
"It would be a big shock if the Fed reverted back to larger rate
hikes now considering everything that's happened this past
couple of weeks," said Craig Erlam, senior market analyst at
OANDA.
Brent prices hit their lowest last week since 2021 on concern
that the rout in bank shares could trigger a global recession
and cut fuel demand.
An emergency rescue of Credit Suisse over the weekend helped
revive oil prices.
(Reporting by Rowena Edwards in London; Additional reporting by
Sudarshan Varadhan in Singapore and Andrew Hayley in Beijing;
Editing by Jan Harvey)
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