Oil prices fell in early trading on Wednesday after sector data showed a sudden increase in US crude inventories, while investors await US inflation data for April, which may give an indication of the Federal Reserve's upcoming decision on interest rates.
Brent crude fell 16 cents to $77.28 a barrel at 0008 GMT, and US West Texas Intermediate crude fell 20 cents to $73.51, trimming the previous session's gains.
In a possible sign of weak demand, US crude inventories rose by 3.6 million barrels in the week ending May 5, while gasoline stocks rose by 399,000 barrels, the American Petroleum Institute reported on Tuesday, according to market sources.
US government data on oil inventories is due on Wednesday.
Meanwhile, the market is awaiting the US CPI figures for April, which are scheduled to be released on Wednesday.
New York Federal Reserve Chairman John Williams said inflation remains very high and the central bank would raise interest rates again if necessary.
Markets were also watching US President Joe Biden and senior Republican lawmakers' statements about raising the US debt ceiling of $31.4 trillion for fear of an unprecedented default if Congress did not act within three weeks.
