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Brent crude futures for September fell 74 cents, or 0.9%, to
$80.97 a barrel by 0855 GMT. U.S. West Texas Intermediate crude
for September slid 74 cents, or 1%, to $76.85.
Both benchmarks rose on Wednesday, snapping consecutive sessions
of declines after the Energy Information Administration said
U.S. crude inventories fell by 3.7 million barrels last week.
That compared with the 1.6 million barrel draw expected by
analysts in a Reuters poll. [EIA/S]
U.S. gasoline stocks dropped by 5.6 million barrels, against
analyst expectations of a 400,000 draw. Distillate stockpiles
fell by 2.8 million barrels versus expectations of a 250,000
increase, EIA 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," said 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 anticipating a weak earnings season for refiners
as margins continue to be squeezed, with crack spreads falling
to very low levels," said Ashley Kelty, analyst at investment
bank Panmure Liberum.
In the Middle East, efforts to reach a ceasefire deal to end the
war in Gaza between Israel and militant group Hamas 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.
(Reporting by Noah Browning; Additional reporting by Yuka
Obayashi in Tokyo and Emily Chow in Singapore; Editing by David
Goodman)
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