After posting gains in the previous two sessions, crude oil futures failed to hold early gains and drifted down to end on a weak note on Thursday.
Oil prices moved higher early on in the session, extending previous session’s gains on the Energy Information Administration’s report that showed another drawdown in U.S. inventories and strong U.S. gasoline demand.
Traders also bet that rising output from OPEC and other members may not be adequate to address shrinking supplies from Iran.
However, prices edged lower subsequently and crude oil futures for October expired at $70.80 a barrel today, losing $0.32, or 0.55%, for the session.
Crude oil futures for November delivery ended lower by $0.45, or 0.6%, at $70.32 a barrel.
Oil’s retreat can be attributed to the U.S. President Donald Trump’s tweet that called on the OPEC members to lower crude prices.
Traders also probably weighed the prospects of a possible drop in demand for crude amid escalating trade tensions between the U.S. and China.
According to the data from EIA, U.S. crude oil stockpiles fell 2.1 million barrels in the week to September 14 to 394.1 million barrels, the lowest level since February 2015.
Supplies at Cushing, Oklahoma, decreased by 1.250 million barrels last week, the EIA report said.
The EIA report further showed that gasoline stockpiles were down by 1.7 million barrels for the week, while distillate stockpiles climbed by 800,000 barrels.
OPEC and other producers including Russia are scheduled to meet in Algeria this weekend to discuss proposals for sharing out an oil-output increase to offset the loss of Iranian output, post sanctions from November 4.