(Corrects paragraph three to say U.S. crude rose on Tuesday $2.04, not $2.06)
By Keith Wallis
SINGAPORE, July 13 (Reuters) - Crude futures fell on Wednesday as investors took gains after oil prices surged nearly 5 percent in the previous session, partly on the back of a forecast increase in demand next year.
A surprise build in U.S. crude stocks and a stronger U.S. dollar which gained on Wednesday against a basket of currencies .DXY weighed on oil prices.
U.S. crude CLc1 slipped 45 cents to $46.35 a barrel as of 0007 GMT after ending the previous session up $2.04, or 4.6 percent.
Brent futures LCOc1 fell 51 cents to $47.96 a barrel after settling up $2.22, or 4.8 percent.
Those were the biggest daily gains since April 8 and followed Monday's session when oil fell to two-month lows.
Credit Suisse (SIX:CSGN) raised its 2016 oil price forecasts on Wednesday for U.S. crude, West Texas Intermediate, and Brent.
It forecast WTI would average $43.59 per barrel this year versus $36.91 in its earlier forecast, and $55.00 per barrel for 2017, versus an earlier forecast of $52.88.
Brent is forecast to average $44.53 a barrel this year, up from an earlier estimate of $37.77, and average $56.25 a barrel in 2017, up from $54.25 earlier.
"We are on the cusp of U.S. weekly production statistics - the market is keeping a close eye on that. There is maybe a little bit of profit taking ahead of the stats," said Ben Le Brun, market analyst at Sydney's OptionsXpress.
The U.S. Department of Energy's Energy Information Administration (EIA) will release official weekly inventory data later on Wednesday.
That would come after oil stocks data from industry group, the American Petroleum Institute on Tuesday showed U.S. crude inventories rose by 2.2 million barrels in the week to July 8 to 523.1 million, compared with analysts' expectations for a decrease of 3 million barrels. unexpected increase led oil prices to pare gains in post-settlement trade.
While the EIA on Tuesday cut its U.S. and world oil demand growth forecast for this year, it increased its demand growth estimates for 2017. came as the Organization of the Petroleum Exporting Countries was upbeat on the oil market outlook for 2017 saying in its monthly report that global demand for its crude would be higher than its current production. market is running off good vibes from OPEC which forecast higher oil demand. That was fundamentally the good news story of the night," Le Brun said.
Oil markets are also eyeing the impact of an international court ruling on Tuesday that China has no historic title over the waters of the South China Sea potentially putting it in conflict with other countries in the region which have rival claims. are keeping a watchful eye on China trade balance data later on Wednesday, Le Brun said.