West Texas Intermediate traded near its lowest closing price in a week after the American Petroleum Institute reported that U.S. crude supplies expanded. Brent was steady as Russia called for an end to violence in Ukraine.
The pound rose the most in almost two weeks against the dollar amid speculation that the Bank of England will refrain from increasing its monetary stimulus at the end of a two-day policy meeting tomorrow.
U.K. government bonds fell, with 10- year gilts dropping for an eighth day, as a government report showed inflation stayed at the fastest since May, weakening the case for more central bank asset purchases.
Oil rebounded from a two-week low after a report showing improved investor confidence in Germany and a debt sale in Spain that exceeded targets countered concern that European credit may be downgraded.