LONDON, Feb 28 (Reuters): Oil prices pulled back on Wednesday as the prospect of delays to US interest rate cuts and a jump in US crude stocks that trounced expectations offset a boost from a potential extension to OPEC+ supply curbs.
Brent crude futures fell 76 cents, or 0.91 per cent, to $82.89 a barrel by 1227 GMT. US West Texas Intermediate futures (WTI) were down 83 cents, or 1.05 per cent, at $78.04. Both benchmarks had fallen $1 in earlier trading.
Vandana Hari, founder of oil market analysis provider Vanda Insights, attributed the price falls to profit-taking plus a combined response to a surge in US crude stocks and continuing hopes of a Gaza ceasefire deal in coming days.
US crude stocks showed an 8.43 million barrel build in the week ended Feb. 23, according to market sources citing American Petroleum Institute (API) figures on Tuesday.
That shattered expectations of a 1.8 million barrel build, according to analysts polled by Reuters on Monday.
Federal Reserve Governor Michelle Bowman had signalled on Tuesday that she was in no rush to cut US interest rates, particularly given continuing inflation risks. Higher-for-longer rates could dampen economic growth and suppress demand for oil.
Due Thursday is the January US personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation and a key factor in rate decisions.
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