Brent futures, which have risen nearly 6% this week, were down 33 cents, or -0.42%, at $78.94 a barrel at 0630 GMT. U.S. West Texas Intermediate (WTI) crude fell by 22 cents, or -0.3%, to $74.15, having gained about 8% this week.
Markets are now waiting for U.S. spending and inflation data on Friday and the resulting impact on the U.S. dollar.
“The market may maintain its rebound if today’s U.S. PCE offers positive signals to the markets that US inflation is expected to cool further,” said Tina Teng, an analyst at CMC Markets in Auckland.
“Disappointing data may cause concerns about Fed policy again and cap the recent gains,” she added.
Prices have ticked up this week over optimism surrounding China’s economic recovery. China’s manufacturing activity rose in March at a slower pace compared with a record-breaking expansion in February, but still exceeded expectations by economists in a Reuters poll.
Industrial activity in China has…
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