Benchmark oil for August delivery was down 64 cents at $87.02 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Crude rose $3.91 to close at $87.66 on Tuesday, the last day the August contract settled in New York.
In London, Brent crude for August delivery was down 2 cents at $99.79 per barrel on the ICE Futures exchange.
Analysts expect the European Central Bank and the Bank of England to either cut lending rates or boost money in circulation at meetings later Thursday. Europe’s weak economy and the continent’s debt crisis have helped pull oil prices down from $106 two months ago.
The U.S. Energy Department’s Energy Information Administration announces its weekly report later Thursday on the latest U.S. crude supply figures.
The American Petroleum Institute said late Tuesday that crude inventories fell 3 million barrels last week while stocks of gasoline fell 1.4 million barrels.
U.S. gasoline "supplies are low, but demand is even lower," energy trader and consultant The Schork Group said in a report.