As concerns over the lasting economic fallout from the coronavirus pandemic outweighed signs of improving demand, oil prices dipped on Wednesday. Brent crude futures for July delivery were trading at $34.54 per barrel at 0031 GMT, down 11 cents (0.3 percent).
US West Texas Intermediate (WTI) crude futures for July were at $31.83 a barrel, down 13 cents (0.4 percent). After WTI futures for June expired on Tuesday, the July contract became the front month.
With both benchmarks climbing to above $30 for the first time in more than a month on Monday, oil prices have risen in the past three weeks, supported by massive output cuts by major oil producers and signs of improving demand.
A bleak economic outlook from the US Federal Reserve, however, put downward pressure on oil prices. Layoffs by state and local governments will slow the US economic recovery, while Boston Federal Reserve Bank President Eric Rosengren said the US unemployment rate is likely to stay at double-digit levels by year-end.
Down by 4.8 million barrels, US crude inventories in the week to May 15 fell to 521.3 million barrels, data from the American Petroleum Institute showed.
