Oil prices ease on dim economic outlook despite signs of firmer demand

* Brent July contract falls 0.3%, WTI down 0.4%
* Fed sees double-digit U.S. jobless levels at year-end
* U.S. crude stocks fall by 4.8 mln bbls last week - API

By Jane Chung
SEOUL, May 20 (Reuters) - Oil prices dipped on Wednesday as
concerns over the lasting economic fallout from the coronavirus
pandemic outweighed signs of improving demand and production
cuts by major oil producers.
Brent crude futures for July delivery LCoc1 were trading
down 11 cents, or 0.3%, at $34.54 per barrel at 0031 GMT.
U.S. West Texas Intermediate (WTI) crude futures for July
CLc1 were down 13 cents, or 0.4%, at $31.83 a barrel. The July
contract became the front month after WTI futures for June
expired on Tuesday, avoiding the chaos of last month's May
expiry when prices slid into negative territory.
Oil prices have risen in the past three weeks, with both
benchmarks climbing to above $30 for the first time in more than
a month on Monday, supported by massive output cuts by major oil
producers and signs of improving demand.
However, a bleak economic outlook from the U.S. Federal
Reserve put downward pressure on oil prices.
U.S. Federal Reserve Chair Jerome Powell said on Tuesday
layoffs by state and local governments will slow the U.S.
economic recovery, while Boston Federal Reserve Bank President
Eric Rosengren said the U.S. unemployment rate is likely to stay
at double-digit levels by year-end. "Crude oil prices gave up earlier gains amid concerns about
the long-lasting economic damage the coronavirus has caused,"
ANZ Research said in a note.
U.S. crude inventories fell by 4.8 million barrels to 521.3
million barrels in the week to May 15, data from industry group
the American Petroleum Institute (API) showed on Tuesday.
Official data from the Energy Information Administration
(EIA) is due at 10:30 a.m. (1430 GMT) on Wednesday. API/S
Reflecting a slow return of demand, Asia's gasoline profit
margins GL92-SIN-CRK turned positive on Tuesday for the first
in nearly two months, giving hope to global oil refiners.