Oil fell on Wednesday as lacklustre economic data in China, the world's biggest crude importer, weighed on demand sentiment, but prices were set for their first monthly gain since September as broadening Middle East conflicts raised supply concerns.

Asian shares fell broadly on Wednesday, while the Australian dollar slid after surprisingly soft inflation data and Japanese government bond (JGB) yields ticked higher on growing bets of an imminent policy shift from the Bank of Japan (BOJ).

Prices in British shops rose at the slowest annual pace since May 2022 this month, the British Retail Consortium (BRC) said on Tuesday, adding to signs of easing inflation pressures ahead of this week's Bank of England (BoE) policy decision.

A strong economic outlook is helping U.S. stocks weather a rise in Treasury yields, though that could change if factors such as tighter monetary policy drive yields higher or if they move up too fast, Goldman Sachs strategists said.

Asian shares fell on Tuesday, hurt by the court-ordered liquidation of property giant China Evergrande (HK:3333) while rising geopolitical tensions propped up oil prices and kept a lid on risk appetite ahead of the Federal Reserve's meeting

Oil prices rose in early trade on Tuesday as escalating geopolitical tensions in the Middle East continued to fuel supply concerns.