Euro zone inflation rose in May
U.S. inflation data expected 1230 GMT
OPEC working on complex deal to extend production cuts

LONDON, May 31 Reuters Oil prices held steady on Friday as investors awaited U.S. inflation data for clues on the demand outlook before turning attention to Sunday39;s OPEC meeting to determine the state of supply into next year.

Brent futures for July delivery were down 44 cents, or 0.5, at 81.42 a barrel by 1026 GMT while the more liquid August futures were up 8 cents at 81.96.

The spread between the two contracts hit an 11month low, entering contango for the first time this year.

U.S. West Texas Intermediate WTI crude was down 3 cents at 77.88.

Brent is on course for a monthly loss of about 7 after dropping in the previous session on a surprise build in U.S. fuel inventories.

Higher refinery utilisation brought a deeper than expected draw in crude oil stocks in the week to May 24, Energy Information Administration EIA data showed.

However, gasoline inventories rose by 2 million barrels, against expectations of a 400,000 barrel draw and higher demand ahead of the Memorial Day weekend.

U.S. summer travel season kicked off with Memorial Day weekend, with initial indications showing strong driving and flying activity but fuel use looks more muted, implying efficiency gains, Citi analysts wrote in a note.

In the euro zone, inflation rose by 2.6 in May, Eurostat data showed, beating the 2.5 expected by economists polled by Reuters.

The…