Oil prices slip ahead of U.S. inventory report | Reuters

Oil prices slip ahead of U.S. inventory report | Reuters

Oil prices slipped after early gains on Wednesday, though a potential drop in U.S. crude stocks and tighter supplies capped losses.

Brent crude futures were at $84.56 a barrel by 1101 GMT, down 22 cents, or 0.3%, after touching a session high of $85.50.

U.S. West Texas Intermediate (WTI) crude futures fell by 49 cents, or 0.6%, to $83.66 after rising close to $85.

Market sources said that API data showed U.S. crude stocks declined by 2.5 million barrels for the week to Nov. 5, defying analysts' estimates for a 2.1 million build in crude stocks in a Reuters poll.

"After the strong rally over the last few days, oil prices are in a wait and see mode," said UBS analyst Giovanni Staunovo.