Oil prices eased on Wednesday after sharp gains, but remained near their highest levels since April, as crude and fuel product inventory data showed robust U.S. demand and offset concerns about the Chinese economy.
Brent crude futures for October last slipped 79 cents, or 0.93%, to $84.12 U.S. a barrel. U.S. West Texas Intermediate crude for September fell 91 cents, or 1.12%, to $80.46 a barrel.
Both contracts rose by more than $1 earlier on the session, buoyed by falling U.S. stockpiles.
U.S. crude inventories fell by 15.4 million barrels in the week ended July 28, according to market sources citing American Petroleum Institute figures, compared with analysts’ estimates for a drop of 1.37 million barrels.
If the U.S. government figures, due later on Wednesday, match the API drawdown number, it would mark the largest drop in U.S. crude inventories according to records dating back to 1982.
Elsewhere, crude oil inventories have also begun to drop in other regions as demand outpaces supply, which has been constrained by deep production cuts from Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries.
Concerns have risen that oil buying in China, the world’s biggest oil importer, may slow as prices rise.
Weak PMI data released this week, meanwhile, indicated fuel demand may be weaker than expected.
