Brent and WTI benchmarks have been on rise since May
Inflation data awaited for clues on interest rates
Saudi and Russian output cuts add to supply concerns

LONDON, Aug 10 Reuters Oil prices steadied on Thursday as investor caution ahead of U.S. inflation data softened a protracted price rally on supply tightness.

Brent crude edged up 14 cents to 87.69 a barrel by 0757 GMT while West Texas Intermediate crude WTI crept up by 1 cent to 84.5.

Oil prices have been boosted in recent days by extensions to output cuts by Saudi Arabia and Russia, alongside supply fears driven by the potential for tensions between Russia and Ukraine in the Black Sea region to threaten Russian oil shipments.

At present it does not appear that there is anything untoward in the energy sector to upset this rally. Commentators and traders alike are much concentrated on fundamentals rather than what might be ailing the wider macroeconomic suite, said John Evans of oil broker PVM.

The poor state of Chinas manufacturing, its property sector and some stubborn world inflation stand out as issues that the oil fraternity chooses to ignore at present.

All eyes are on July consumer prices data from the United States on Thursday, which should provide a steer on the U.S. Federal Reserve39;s future monetary policy.

Oil investors will be widely watching the US Inflation print which is anticipated to reflect a slight rebound, a scenario likely to spur fears of more rate hikes, Priyanka Sachdeva, senior…