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Brent crude futures fell 18 cents to $83.18 a barrel at 0808
GMT, while U.S. West Texas Intermediate (WTI) crude futures also
lost 18 cents to $78.94 a barrel.
On Monday, Brent marked its biggest daily gain in more than two
weeks, and WTI in more than a month, on signs of improving
demand in the U.S. and China, the world's top two oil consumers.
"Oil prices were slightly higher overnight but remain in a broad
holding pattern over the past week, with the lead-up to the
upcoming U.S. inflation data keeping some reservations in
place," said Yeap Jun Rong, market strategist at IG.
Investors are watching the U.S. Consumer Price Index data due on
Wednesday for clues to when the Federal Reserve will consider
cutting interest rates, which could spur economic growth and
therefore oil demand.
"Ahead, the OPEC monthly oil report will be in focus to provide
any updates on global oil demand, with some eyes on whether the
previous optimistic guidance around the summer travel season
will continue to hold," said Yeap.
The latest OPEC monthly oil market report is due later on
Tuesday.
The market is also watching wildfires in remote western Canada
that could disrupt the country's oil supply.
Firefighters on Monday were racing to contain one blaze in
British Columbia and two in Alberta near the heart of the
country's oil sands industry.
"Spreading wildfires in Alberta oil sands impose downside risks
to our constructive Canada production outlook as massive fires
in the same region eight years ago triggered a temporary
shutdown of over 1 million bpd oil production," said Goldman
Sachs analysts in a note.
No operational disruptions had been reported. But Alex Hodes,
analyst at energy brokerage StoneX, said Canada's 3.3 million
barrel per day (bpd) production capacity is "very likely to be
affected".
(Reporting by Paul Carsten in Londion and Jeslyn Lerh in
Singapore; Additional reporting by Colleen Howe in Beijing;
Editing by Gerry Doyle, Stephen Coates, Christian Schmollinger
and Louise Heavens)
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