LONDON, Nov 15 (Reuters): Oil prices dipped on Wednesday due to expectations of an increase in US crude stocks amid record high output in the world's biggest producer and despite positive demand signs from top consumer China.
Brent futures were down 69 cents to $81.78 a barrel at 1346 GMT, while US West Texas Intermediate (WTI) crude was down 78 cents to $77.48.
In signs of healthy US crude supply, American Petroleum Institute figures on Tuesday showed rising crude oil and gasoline inventories last week, according to market sources.
The U.S. Energy Information Administration (EIA) will also release on Wednesday its first oil inventory report in two weeks, after a delay last week due to a systems upgrade.
In good news for demand, China's economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations, an encouraging sign for the world's second-largest economy.
The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.
"With China being a scapegoat for much of the world's lack of industrial demand, this glimmer of light ought to aid oil's progress but the reluctance is so far winning out," John Evans of oil broker PVM said in a note.
Downward pressure on oil prices may come from the supply side, with the United States "likely at peak production for crude," while the delayed release of its oil data makes the investment situation more opaque, Evans said.
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