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Brent crude futures were down 5 cents at $82.33 a barrel at 1042
GMT. U.S. West Texas Intermediate crude futures (WTI) fell 1
cent to $78.01 a barrel.
U.S. crude oil inventories fell by 3.104 million barrels in the
week ended May 10, according to market sources citing American
Petroleum Institute figures on Tuesday.
Gasoline inventories fell by 1.269 million barrels and
distillates rose by 673,000 barrels.
U.S. government inventory data is due later on Wednesday which
is likely to also show a drop in crude stockpiles as refineries
increase their runs to meet increased fuel demand heading into
the peak northern hemisphere summer driving season.
Still, the International Energy Agency (IEA) trimmed its
forecast for 2024 oil demand growth on Wednesday by 140,000
barrels per day (bpd) to 1.1 million bpd, largely citing weak
demand in developed OECD nations.
Oil demand in those countries actually contracted in the first
quarter of this year, the IEA added.
"Prices will remain range bound between $80-$90 through 2Q24,"
said Macquarie global oil and gas strategist Vikas Dwivedi.
"After 2Q, we expect oil will become bearish as a result of
non-OPEC supply growth, decreasing OPEC+ space capacity and
softer-than-anticipated demand due to persistent inflation."
U.S. consumer price index (CPI) data is also due on Wednesday
and should give a clearer indication whether the Federal Reserve
may cut interest rates later this year, which could spur the
economy and boost fuel demand.
Oil prices also found support from a softer U.S. dollar and
concerns around Canadian oil supply.
A large wildfire is approaching Fort McMurray, the hub for
Canada's oil sands industry that produces 3.3 million barrels
per day of crude, or two-thirds of the country's total output.
(Additional reporting by Katya Golubkova in Tokyo and Emily Chow
in Singapore; Editing by Christopher Cushing, Emelia
Sithole-Matarise and Ros Russell)
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