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U.S. consumer price index figures for April due Wednesday
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Cooler temperatures offer some reprieve for Alberta wildfires
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POLL-US crude inventories seen down for fourth straight
week
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Coming up: EIA data on U.S. oil inventories at 10:30 a.m.
EDT
By Stephanie Kelly
May 10 (Reuters) - Oil prices slipped in early trade on
Wednesday after industry data showed a surprise build in U.S.
crude stocks, while investors awaited U.S. inflation data for
April that could give direction for the Federal Reserve's next
rate decision.
Brent crude dropped 16 cents to $77.28 a barrel at
0008 GMT, while U.S. West Texas Intermediate (WTI) crude dipped 20 cents to $73.51, paring gains from the previous
session.
In a possible sign of weakening demand, U.S. crude
inventories rose by about 3.6 million barrels in the week ended
May 5, while gasoline stockpiles rose by 399,000 barrels, the
American Petroleum Institute reported on Tuesday according to
market sources.
The data defied expectations from eight analysts polled by
Reuters for a 900,000-barrel drawdown in crude inventories and a
1.2 million-barrel drop in gasoline stocks.
U.S. government data on oil inventories is due on Wednesday. At the same time, the market is awaiting U.S. consumer price
index (CPI) figures for April due to released on Wednesday.
New York Fed President John Williams said inflation remains
too high and that the central bank will raise rates again if
necessary, even though the U.S. central bank dropped guidance
about the need for future hikes.
In Alberta, Canada's main oil-producing province, wildfires
eased on Tuesday thanks to cooler weather. The wildfires forced
oil and gas producers to shut in at least 319,000 barrels of oil
equivalent per day (boepd), or 3.7% of the country's production.
Markets were also monitoring U.S. President Joe Biden and
top Republican lawmakers' comments on raising the $31.4 trillion
U.S. debt ceiling, fearing an unprecedented default if Congress
does not act in three weeks.
(Reporting by Stephanie Kelly; Editing by Sonali Paul)
