SINGAPORE, May 22 Reuters Oil prices fell for a third straight session on Wednesday on expectations the Federal Reserve might keep U.S. interest rates higher for longer due to sustained inflation, potentially impacting fuel use in the world39;s largest oil consumer.

Brent crude futures were down 71 cents, or 0.9, to 82.17 a barrel, while U.S. West Texas Intermediate crude WTI futures slipped 73 cents, or 0.9, to 77.93 as of 0650 GMT.

Oil prices settled about 1 lower on Tuesday.

Fed policymakers said on Tuesday the U.S. central bank should wait several more months to ensure that inflation really is back on track towards its 2 target before cutting interest rates.

Higher borrowing costs can slow economic growth and pressure oil demand.

U.S. crude oil and gasoline inventories rose last week, while distillates fell, according to market sources citing American Petroleum Institute API figures on Tuesday.

Ahead of this weekend39;s Memorial Day holiday, which kicks off the U.S. peak summer driving season, retail gasoline prices fell for the fourth consecutive week. U.S. prices of diesel, a key refined product for both the industrial sector and transport, have also slipped.

Investors are awaiting minutes from the Fed39;s last policy meeting and weekly U.S. oil inventory data from the U.S. Energy Information Administration EIA due later on Wednesday.

The Federal Open Market Committee FOMC minutes will be scrutinised for Fed39;s assessment of bumpy Q1 inflation and clues on…