Oil prices edge higher on strong consumer demand, inventory declines

NEW YORK (Reuters) -Oil prices edged higher on Wednesday, rebounding from early losses after U.S. inventory data showed strong consumer demand and as the Federal Reserve said it would end its pandemic-era bond purchases in March to slow rising inflation.

Prices had been pressured most of the day due to ongoing concerns that supply growth will outpace demand next year and worries that COVID-19 vaccines may be less effective against the spreading Omicron variant.

Brent crude futures settled up 18 cents, or 0.2%, to $73.88 a barrel. U.S. West Texas Intermediate (WTI) crude ended up 14 cents to $70.87 a barrel.