Ahead of U.S. crude oil stockpiles data due later in the day, Brent futures slipped 17 cents or 0.2% to $83.43 a barrel, while U.S. WTI crude dropped 12 cents or 0.15% to $79.11
Oil prices were broadly steady as pressure from U.S. data pointing to higher-for-longer rates was offset by inventory figures showing strong demand for crude in the US.
Ahead of U.S. crude oil stockpiles data due later in the day, Brent futures slipped 17 cents or 0.2% to $83.43 a barrel as of 0921 GMT, while U.S. WTI crude dropped 12 cents or 0.15% to $79.11.
Both benchmarks are headed for monthly losses, with Brent futures on track for a drop of more than 5% from last month, while West Texas Intermediate was poised for a decline of more than 3%.
The broader risk-off environment has translated to some downward pressures on oil prices, which overrides the larger-than-expected drawdown in U.S. crude inventories from the recent API data, according to Yeap Jun Rong, market strategist at IG.
U.S. crude oil inventories dropped last week, down 6.49 million barrels against analyst projections of a 1.9 million barrel draw, as per market sources citing API figures on Wednesday.
Data from the U.S. EIA is due later on Thursday.
But global oil inventories rose throughout April due to soft fuel demand, which may strengthen the case for OPEC+ producers, which include the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, to keep supply cuts in place when they meet on June 2, OPEC+ delegates and analysts say.
A greater driver for oil prices ahead may revolve around the upcoming OPEC+ meeting this weekend, which could see OPEC members extending their current production cuts potentially till the end of Q3 to support prices, Yeap said.
Oil markets have been under pressure over expectations the Fed will keep interest rates higher for longer, with Brent settling at its lowest in over three months on May 23.