WTI for Oct, Brent for Nov climb 1
U.S. gasoline, distillate stockpiles fall API
Iraqi oil flows intact as Baghdad clashes ease
Dollar index dips

Aug 31 Reuters Oil prices recovered slightly on Wednesday as data pointed to firm U.S. fuel demand, providing respite after a 5 drop a day earlier on fears that demand will suffer from increased China COVID curbs and central bank interest rate hikes.

U.S. West Texas Intermediate WTI crude futures jumped 82 cents, or 0.9, to 92.46 a barrel at 0659 GMT, after sliding 5.37 in the previous session driven by recession fears.

Brent crude futures for October, due to expire on Wednesday, climbed 89 cents, or 0.9, to 100.20 a barrel, trimming Tuesday39;s 5.78 loss. The more active November contract was up 88 cents, or 0.9, at 98.72 a barrel.

The price swings since the Ukraine conflict began six months ago have rattled hedge funds and speculators and thinned trading, which in turn has made the market whipsaw even more, as seen on Tuesday.

Supporting market sentiment on Wednesday, data from the American Petroleum Institute API showed gasoline inventories fell by about 3.4 million barrels, while distillate stocks, which include diesel and jet fuel, fell by about 1.7 million barrels for the week ended Aug. 26 .

The drawdown in gasoline stockpiles was nearly triple the 1.2 million barrel drop that eight analysts polled by Reuters had expected on average. For distillate inventories they had expected a drop of about 1 million…