Crude oil prices fell Thursday amid persistent concerns about a weak demand outlook, after posting sharp gains in the previous session following a surprise crude oil inventory drawdown in the U.S., Kallanish Energy reports.
Brent crude futures fell 17 cents, or 0.3%, to $61 a barrel. The international benchmark crude rose 2.5% Wednesday to settle at $61.17/Bbl, levels not seen since Sept. 30.
West Texas Intermediate crude futures dropped 32 cents, or 0.6%, to $55.65/Bbl. U.S. crude closed 3.3% higher in the previous session.
U.S. crude inventories fell 1.7 million barrels (Mmbbl) in the week ended Oct. 18, compared with analysts’ expectations for a 2.2 Mmbbl build, data from the Energy Information Administration revealed.
EIA said the drawdown in weekly stocks came as refineries hiked crude runs and oil imports fell, which prodded a jump in both benchmark crude grades Wednesday.
Some market players said a decline in U.S. product inventories, as shown by the EIA data, could point to underlying demand.
The prospect of deeper production cuts by members of Opec+, which includes most Opec producers, plus 10 non-Opec producers led by Russia, also helped to cap a deeper slide in oil prices Thursday.
Opec+ have since January implemented a deal to cut oil output by 1.2 million barrels per day (Mmbpd) until March 2020 to support the market. The producers will meet to review the policy on Dec. 5-6.
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