WASHINGTON (dpa-AFX) - Oil prices fell slightly in choppy trade on Wednesday as caution set in ahead of highly anticipated U.S. consumer inflation data due later in the day.
Brent crude futures for January delivery slipped 0.1 percent to $84.73 a barrel in European trade, while WTI crude futures for December settlement were down 0.6 percent at $83.67.
Oil prices rose earlier in Asian trade after industry data showed U.S. crude stocks unexpectedly fell last week.
The American Petroleum Institute reported late Tuesday that U.S. crude supplies declined by 2.5 million barrels for the week to Nov. 5, defying analysts' estimates for a 2.1 build in crude stocks.
The report also showed inventory declines of 4.5 million barrels for gasoline and 3.3 million barrels for distillate stockpiles.
If confirmed by the EIA's weekly inventory numbers out later in the day, this would mark the second weekly drop in crude oil inventories in seven weeks.
Focus is also on the U.S. CPI report due later in the day that could test the Fed's stance on rate hikes.
San Francisco Fed President Mary Daly on Tuesday said it will be mid-2022 before there is clarity on the true state of the labor market and the outlook for inflation.
Separately, St. Louis Fed President James Bullard told CNBC that he's currently expecting the U.S. central bank to hike its benchmark rate twice in 2022.
Data showed earlier today that China's factory-gate prices grew at the fastest pace in 26 years in October due to imported inflation and tight domestic supply of major energy and raw materials.
Consumer inflation rose an annual 1.5 percent in the month, quickening from September's 0.7 percent rise due to factors such as weather conditions, tight supply of some goods and rising costs.
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