SINGAPORE, Feb 19 Reuters Oil prices fell as investor attention returned to the demand outlook after reports of higher producer prices in the U.S., the world39;s biggest oil user, stoked worries that sticky inflation and higher interest rates would limit fuel consumption growth.

Brent crude futures were down 55 cents, or 0.7, at 82.92 a barrel at 0720 GMT. The March contract for U.S. West Texas Intermediate crude , which expires on Tuesday, was 41 cents, or 0.5, lower at 78.78.

The WTI April contract was down 0.7, or 54 cents, at 77.92.

Both Brent and WTI contracts had settled higher on Friday, as geopolitical tensions in the Middle East offset slowing demand forecasts from the International Energy Agency.

WTI and Brent eased on Monday morning as investors readjust to demandside fears after a significant jump in U.S. producer price index numbers, said Phillip Nova analyst Priyanka Sachdeva in a research note.

U.S. producer prices increased more than expected in January amid strong gains in the costs of services, which could amplify inflation worries.

Markets are also yet to see the direction of demand from China after it returns from a weeklong Lunar New Year holiday, while Presidents39; Day in the United States is set to keep trade relatively muted.

Moreover, Federal Reserve policymakers on Friday signalled patience toward interest rate cuts. Higher rates keep up the cost of buying oil, providing for a bearish market trend.

Over the weekend, tension in the…