Oil falls on lackluster U.S. summer gasoline demand | Reuters

Oil falls on lackluster U.S. summer gasoline demand | Reuters

Oil prices slipped on Wednesday, after U.S. government data showed lower gasoline demand during the peak summer driving season and as interest rate hikes by central banks to fight inflation fed fears the economy could slow, cutting energy demand.

Prices pared losses during the session after TC Energy said the Keystone pipeline, one of Canada's major oil export arteries, was operating at reduced rates for a third day. Repairs continued on a third-party power facility in South Dakota, prompting concerns about tighter supplies. read more

Brent crude prices for September fell 43 cents to settle at $106.92 a barrel. U.S. West Texas Intermediate (WTI) crude for August fell $1.96 to settle at $102.26 a barrel. The WTI contract expires on Wednesday.

The more active September WTI contract settled at $99.88 a barrel, down 86 cents.

U.S. gasoline inventories (USOILG=ECI) rose 3.5 million barrels last week, government data showed, far exceeding analysts' forecasts in a Reuters poll for a 71,000-barrel rise.