Oil prices fell in early trading on Thursday as markets awaited the latest data on U.S. crude oil inventories, while signs of a strong U.S. economy reinforced expectations that borrowing costs will remain high for longer, potentially hitting demand.
Update prices
Brent crude futures fell 9 cents, or 0.1 percent, to trade at $83.52 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 3 cents, or 0.04 percent, to $79.19 by 0046 GMT.
U.S. crude oil and gasoline inventories fell last week, while distillate stocks rose, data from the American Petroleum Institute showed.
According to data from the Petroleum Institute, crude inventories fell by 6.49 million barrels in the week ending May 24, gasoline inventories fell by 452,000 barrels, while distillate inventories increased by 2.045 million barrels.
Data from the US Energy Information Administration is due out later Thursday.
A rise in global oil inventories, due to falling fuel demand, could support the move by producers in the OPEC+ alliance, which includes OPEC countries and allies including Russia, to maintain supply cuts when they hold their next meeting on June 2, according to representatives of member countries and analysts.
Oil markets have been under pressure recently amid expectations that the Federal Reserve will keep interest rates high for longer.
A survey conducted by the US Federal Reserve showed that economic activity continued to expand from early April through mid-May, but companies became more pessimistic about the future at a time when inflation rose at a modest pace.
High borrowing costs typically constrain funds and consumption, which is negative for crude oil demand and prices.
