Brent crude futures for September declined 74 cents, or 0.9%, to $80.97 a barrel and U.S. WTI crude for September slipped 74 cents, or 1%, to $76.85
Oil prices dropped on Thursday on mixed demand signals a day after large draws on U.S. inventories while consumption in China, the world’s largest crude importer, remains lacklustre.
Brent crude futures for September declined 74 cents, or 0.9%, to $80.97 a barrel by 0855 GMT. U.S. WTI crude for September slipped 74 cents, or 1%, to $76.85.
Both benchmarks gained on Wednesday, snapping successive sessions of declines after the Energy Information Administration (EIA) said U.S. crude inventories dropped by 3.7 million barrels last week.
U.S. gasoline stocks declined by 5.6 million barrels, against analyst expectations of a 400,000 draw. Distillate stockpiles dropped by 2.8 million barrels versus expectations of a 250,000 rise, Energy Information Administration data showed.
Despite draws in U.S. crude and gasoline stocks, investors remained wary about weakening demand in China and expectations of advancing ceasefire talks between Israel and Hamas added to pressure, according to Hiroyuki Kikukawa, president of NS Trading, owned by Nissan Securities.
China’s oil imports and refinery runs this year have trended lower than in 2023 on weaker fuel demand amid sluggish economic growth, government data shows.
Demand still has been weaker over the summer than hoped for and investors are expecting a weak earnings season for refiners as margins continue to be squeezed, with crack spreads dropping to very low levels, said Ashley Kelty, analyst at investment bank Panmure Liberum.
Meanwhile, efforts to reach a ceasefire deal to end the war in the Middle East have gained momentum over the past month.
In Canada, hundreds of wildfires are burning in the western provinces of British Columbia and Alberta, including in the area of oil sands hub Fort McMurray.
