Brent crude futures fell 58 cents, or 0.6 percent, to $90.83 a barrel by 0730 GMT, while West Texas Intermediate crude fell 45 cents, or 0.5 percent, to $89.43 a barrel.
Oil prices are also heading for their first weekly decline after gaining for seven consecutive weeks, despite the fact that both Brent and US crude rose earlier to their highest level in seven years.
Warren Patterson, head of ING’s commodity research unit, said: “The inflation data announced yesterday is likely to put more pressure on the US Federal Reserve in terms of raising interest rates. This expectation weighs on oil and on commodities in general. To some extent,” Reuters reported.
The Organization of the Petroleum Exporting Countries (OPEC) said global oil demand could rise further this year. OPEC expects an increase in demand of up to 4.15 million barrels per day this year, as the global economy records a strong recovery from the pandemic.