Oil prices fell for a third straight session in early trading on Wednesday, amid expectations that the Federal Reserve will keep interest rates high for longer due to persistent inflation, which could affect fuel use in the world's largest oil consumer.
price movement
Brent crude futures fell 59 cents, or 0.7 percent, to $82.29 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 64 cents, or 0.8 percent, to $78.16 by 0254.
Oil futures fell about 1 percent at settlement on Tuesday.
U.S. central bank officials said Tuesday the bank should wait several more months to make sure inflation is actually back on track to its 2 percent target before cutting interest rates.
Higher borrowing costs could slow economic growth and put pressure on demand for oil.
Meanwhile, U.S. crude oil and gasoline inventories rose last week, while distillates fell, according to figures from the American Petroleum Institute on Tuesday.
U.S. gasoline and diesel prices fell for a fourth straight week ahead of the Memorial Day weekend, which marks the start of the peak summer driving season in the United States.
Investors are awaiting the minutes of the Federal Reserve's latest meeting, as well as weekly US oil inventory data due from the Energy Information Administration later on Wednesday.
Meanwhile, the eurozone is moving closer to cutting interest rates at its next meeting on June 6, amid an improving economic outlook. European Central Bank President Christine Lagarde said in an interview broadcast on Tuesday that she is confident that inflation in the eurozone will be under control.
