On Thursday, crude prices dropped as lackluster consumption in China indicated weaker demand from the largest crude importer in the world, outweighing Wednesday’s support from data that showed huge draws on U.S. oil inventories.
Brent crude futures for delivery in September slid 91 cents, or 1.1%, to $80.80 per barrel. U.S. West Texas Intermediate crude for delivery in September fell 85 cents, or 1.1%, to $76.74 per barrel.
During the session, both benchmarks dropped by over $1 per barrel.
On Wednesday, crude prices rose and snapped consecutive sessions of losses after the Energy Information Administration reported U.S. crude inventories last week declined by more than anticipated to 3.7M barrels.
Gasoline stocks in the U.S. fell by 5.6M barrels, versus analyst expectations of a 400K-barrel draw.
NS Trading’s president, Hiroyuki Kikukawa, said despite declines in U.S. gasoline and crude stocks, investors remained worried about weakening Chinese demand and expectations of continuing ceasefire talks between Hamas and Israel added to pressure.
Government data showed Chinese refinery runs and oil imports this year were lower than last year on weaker demand for fuel due to listless economic growth.
Attempts to reach a ceasefire deal to end the war in Gaza have gained steam over the last month. A breakthrough may push prices down.
