Oil prices edge up on optimistic demand outlook

The EIA raised its 2024 world oil demand growth forecast to 1.10 million barrels per day from a previous estimate of 900,000 bpd, while the Organization of the Petroleum Exporting Countries (OPEC) maintained its 2024 forecast for relatively strong growth in global oil demand, citing expectations for travel and tourism in the second half.

Prices had eased more than 2% last week after OPEC and its allies said they would phase out output cuts starting October.

"Despite announcing last week that it will start to phase out some of the voluntary cuts later this year, its forecasts suggest it should be easily accepted by the market," ANZ analysts said in a note clients, adding that demand for oil is likely to be driven by and other emerging economies.

U.S. crude oil stocks fell by 2.428 million barrels in the week ended June 7, according to market sources citing American Petroleum Institute figures. Inventories were expected to have fallen by slightly over one million barrels last week, a preliminary Reuters poll showed.

Data from the EIA, the U.S. government's statistics arm, is expected later on Wednesday.

Investors also looked forward to the Consumer Price Index report, which will be released before the bell on Wednesday, and the U.S. central bank's policy announcement, due later the same day.

Friday's U.S. monthly jobs report was stronger than expected. Markets have dialled back expectations for the Federal Reserve's first rate cut happening in September, now pricing in about a 50% chance, according to the CME's FedWatch tool

Chinese producer and consumer price inflation figures are also set to be released during the day.