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Brent futures were up 19 cents, or 0.2%, at $84.85 a barrel at
1013 GMT, after falling 1.3% in the previous session.
U.S. West Texas Intermediate (WTI) crude was up 28 cents, or
0.3%, to $81.69 a barrel, after falling 1.1% in the previous
session.
U.S. crude oil and gasoline inventories fell by 1.923 million
barrels and 2.954 million barrels, respectively, according to
market sources who cited American Petroleum Institute figures on
Tuesday. [API/S]
Official data from the U.S. Energy Information Administration
will be released at 1430 GMT. [EIA/S]
Both contracts ended the previous three sessions lower on signs
that the Texas energy industry came off relatively unscathed
from Hurricane Beryl after it lashed the region on Monday.
Oil and gas companies restarted some operations on Tuesday. Some
ports reopened and most producers and facilities were ramping up
output, although some facilities sustained damage and power has
not been fully restored yet.
"The latest bout of selling can be attributed to two major
factors: the potential revival of truce talks between Israel and
Hamas and Hurricane Beryl," PVM Oil analyst Tamas Varga said.
In the Middle East, negotiations to secure a ceasefire in the
Gaza war will resume in Doha, with the intelligence chiefs of
Egypt, the United States, and Israel in attendance.
Concerns over demand in China also weighed on prices as consumer
prices in the world's second-largest economy grew for a fifth
month in June, but missed expectations, while producer price
deflation persisted.
Meanwhile, comments from U.S. Federal Reserve Chair Jerome
Powell suggested the case for interest rate cuts is becoming
stronger.
Lower interest rates should spur economic growth, and therefore,
oil consumption.
Following Powell's comments, investors continued to bet on a
nearly 70% chance the Fed will cut rates in September, the CME's
FedWatch tool showed.
(Additional reporting by Emily Chow and Trixie Yap in Singapore;
Editing by Mark Potter)
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