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Oil prices fall on slowdown in US crude demand

Oil prices fall on slowdown in US crude demand

Oil prices fell more than 0.5 percent on Thursday on the back of data showing a lower than forecast drop in US crude stocks and concerns about the global economy.

As of 08:49 GMT, Brent crude future were 0.75 percent low at $63.33 a barrel, while it closed 1.5 percent up on Wednesday.

Crude oil futures also reported 0.89 percent decrease to $56.84 a barrel after jumping1.9 percent the previous session.

U.S. crude inventories slumped 1.1 million barrels last week, compared to forecasts of 2.8-million-barrel decrease, the EIA government report showed.

Crude stockpiles fell lower than expected as US refineries consuming less crude than the previous week and treating them by two percent less oil than a year ago, according to information management figures, although they are in the middle of the summer demand season on gasoline.

The United States produced its first rise in 4 weeks during the week ending June 28/Last year, 100,000 barrels per day to 12.200 million barrels per day.

While Baker Hughes announced the crude drilling rig data yesterday instead of Friday for holiday in the US market today, the data showed that it dropped by 5 pallets to 788 platforms.

This suggests that the demand for oil in the United States, the world's largest consumer of crude, may decelerate amid signs of a weaker economy.

The weak US data came after a report that reported slow growth of corporate activities in Europe last month, ahead of Friday’s U.S. non-farm payrolls data.

This week, OPEC and other major producers, known as OPEC+, agreed to extend the production cut-off agreement by 1.2 million barrels per day until the end of March.

In the meantime, the U.S. dollar index, which measures the performance of major 6 currencies, rose 0.04 percent to 96.386. 

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