(Reuters) Oil prices fell as concerns about fuel demand were stoked by expectations minutes of the U.S. Federal Reserve's last policy meeting due later in the day would indicate a need for higher interest rates.
Brent crude futures for April delivery fell 66 cents, or 0.79%, to $82.39 a barrel by 1317 GMT. West Texas Intermediate (WTI) crude futures for April dropped by 54 cents, or 0.71%, to $75.82 a barrel.
The U.S. Fed will release the minutes of its latest meeting, which will give traders a glimpse of how high officials are projecting interest rates will go after recent data showed stronger-than-expected U.S. employment and consumer prices.
Higher interest rates tend to lift the dollar, making dollar-denominated oil more expensive for holders of other currencies and reducing demand.
Other economic reports from the United States, the world's biggest oil consumer, showed some troubling signs however. Sales of existing homes fell in January to their lowest since October 2010.
A preliminary Reuters analyst poll also showed a rise in U.S. crude inventories, exacerbating the demand worries.
The economic outlook across Europe, however, continues to show resilience, UBS said in a note. This followed business surveys which showed surprisingly strong growth.
Expectations of tighter global supplies and rising demand from China also cushioned overall price weakness.
Analysts expect China's oil imports to hit a record high in 2023 to meet increased demand for transportation fuel and as new refineries come on stream.
In a note, Daniel Hynes, senior commodity strategist at ANZ Bank, pointed to state-owned PetroChina and Unipec booking 10 supertankers to import oil from the United States next month, equal to about 20 million barrels of crude, as signs of rising Chinese demand. China is the world's largest oil importer.
Morgan Stanley has raised its global oil demand growth estimate for this year by about 36%, citing growing momentum in China's reopening and a recovery in aviation, but flagged higher supply from Russia as an offseting factor.
