Oil futures headed lower on Thursday, building on their losses for the week, pressured by concerns over a potential decline in global demand on the back of the U.S. trade dispute with China and economic woes in emerging markets.
The price pressures outweighed support from data showing a hefty weekly decline in U.S. crude inventories as well as ongoing expectations for tighter crude supplies tied to U.S. sanctions on Iranian oil that begin in early November.
October West Texas Intermediate crude CLV8, -2.12% the U.S. oil benchmark, lost $1.12, or 1.6%, at $67.61 a barrel on the New York Mercantile Exchange. CLV8, -2.12% It was trading at $68.60 shortly before the supply report.
November Brent LCOX8, -1.72% the global benchmark, fell 65 cents, or 0.8%, at $76.62 a barrel, following a loss of 1.2% in the previous session on the ICE Futures Europe exchange.
The Energy Information Administration reported Thursday that domestic crude supplies fell by 4.3 million barrels for the week ended Aug. 31. That was larger than the 2.5 million-barrel fall expected by analysts polled by S&P Global Platts, and the decrease of 1.2 million barrels reported by the American Petroleum Institute Wednesday. Supply data were released a day later than usual due to Monday’s Labor Day holiday.
Gasoline stockpiles rose 1.8 million barrels for the week, while distillate stockpiles added 3.1 million barrels, according to the EIA. The S&P Global Platts survey forecast a supply decline of 1.5 million barrels for gasoline, but distillates were expected to be unchanged.
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