U.S. consumer price index figures for April due on Wednesday
Coming up EIA data on U.S. oil inventories at 1030 a.m. EDT

May 10 Reuters Oil prices fell on Wednesday, ending a threeday rally as an unexpected rise in U.S. oil inventories sparked demand concerns and investors waited for inflation data for a steer on U.S. interest rates.

Brent crude dropped 64 cents, or 0.8, to 76.80 a barrel by 1220 GMT while U.S. West Texas Intermediate WTI crude fell 60 cents, or 0.8, to 73.11.

In a possible sign of weakening demand, U.S. crude inventories rose by about 3.6 million barrels in the week ended May 5 while gasoline stockpiles rose by 399,000 barrels, the American Petroleum Institute was reported as saying by market sources on Tuesday.

The data defied expectations from eight analysts polled by Reuters for a drawdown of 900,000 barrels of crude and a 1.2 million barrel drop in gasoline stocks. U.S. government data on oil inventories is due on Wednesday.

The surprising U.S. inventory build along with lower crude imports and April39;s softer export growth in China exacerbated worries about global oil demand.

The market is awaiting U.S. consumer price index CPI figures for April on Wednesday.

New York Fed President John Williams said inflation remains too high and the central bank will raise rates again if necessary, even though the Federal Reserve dropped guidance about the need for future hikes.

The market is also awaiting the monthly oil report from the Organization of…