BEIJING/SINGAPORE: Oil prices fell on Thursday after rising in the previous session as investors weighed expectations for lower US fuel demand with the end of the summer demand season nearing and awaited India’s response to punitive US tariffs.
Brent crude futures dropped 50 cents, or 0.73 percent, to $67.55 at 9:43 a.m. Saudi time, and West Texas Intermediate crude futures declined 51 cents, or 0.80 percent, to $63.64.
Both contracts climbed in the prior session after the US Energy Information Administration reported that US crude inventories fell by 2.4 million barrels in the week ended August 22, compared with analysts’ expectations in a Reuters poll for a 1.9-million-barrel draw.
“Oil prices are pulling back this morning as traders reassess yesterday’s rally driven by the EIA report,” said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
“While US crude inventories did post another drawdown, the pace of declines slowed compared with last week’s sharper drop, tempering bullish momentum,” she added.
