Petroleum prices slipped after early gains on Wednesday, though a potential drop in U.S. crude stocks and tighter supplies capped losses.
Brent crude futures were at $84.61 U.S. a barrel, down 17 cents, or 0.2%, after touching a session high of $85.50.
U.S. West Texas Intermediate (WTI) crude futures fell by 48 cents, or 0.6%, to $83.67 after rising close to $85.
Market sources said that American Petroleum Institute data showed U.S. crude stocks declined by 2.5 million barrels for the week to Nov. 5, defying analysts’ estimates for a 2.1 million build in crude stocks in a Reuters poll.
U.S. Energy Information Administration (EIA) official oil inventory data is expected later on Wednesday.
Further underpinning the view the market remains tight, trading giant Vitol Group’s CEO, Russell Hardy, said on Tuesday that oil demand had returned to pre-pandemic levels and demand in the first quarter of 2022 could exceed 2019 levels.
Market gains on Tuesday were mainly driven by a short-term outlook from the EIA, which projected gasoline prices would fall over the next few months.
That was a key factor U.S. President Joe Biden had been watching to determine whether to release oil from the Strategic Petroleum Reserve amid concern over recent soaring gasoline prices.
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