Oil prices fell on Wednesday ahead of a key U.S. report on inflation and after industry data showed U.S. crude inventories unexpectedly rose last week, signaling a potential hiccup in demand.
Brent crude futures fell 74 cents, or 0.8%, to $95.57 a barrel at0651 GMT. U.S. West Texas Intermediate crude futures fell as much as $1.13 to $89.37. It was last down 88 cents, or 1%, at$89.62 a barrel.
The Consumer Price Index (CPI) report will be released at 1230 GMT on Wednesday. U.S. consumer prices are expected to have risen at a slower pace in July due to a sharp drop in the cost of gasoline, but that is not expected to stop the Federal Reserve from at least several more sharp interest rate hikes which could curb economic activity and fuel demand. read more
Meanwhile, U.S. crude stocks rose by about 2.2 million barrels for the week ended Aug. 5, according to market sources citing American Petroleum Institute figures.