Oil fell on Thursday, with a surprise rate cut from the European Central Bank boosting the dollar and hitting commodities priced in the U.S. currency.
Losses were limited by a drop in crude oil inventories in the United States, with data from the Energy Information Administration (EIA) showing they fell by 905,000 barrels last week. U.S. gasoline stocks dropped by 3.2 million barrels.
“The report is mildly supportive, due mostly to the large gasoline inventory drawdown,” said John Kilduff, a partner at Again Capital LLC in New York. “The improving economic conditions and lower retail prices for gasoline are having an effect. Gasoline demand remains strong as a result.” Brent crude for October delivery fell nearly $1 to trade under $102 a barrel. U.S. crude slid by $1.09 to settle at $94.45 a barrel, after settling $2.66 higher on Wednesday.