Despite recent data showing a drop in supplies, crude oil prices declined slightly on Thursday on worries the U.S.-China trade war could hurt global economic growth and result in a drop in demand for crude.
The U.S. tariffs on another $16 billion worth of Chinese goods came into force today and China has retaliated swiftly, levying 25% tariffs on $16 billion worth of imports, including diesel fuel and other chemical products, from U.S.
Data released by the Energy Information Administration on Wednesday showed U.S. crude inventories to have dropped by 5.836 million barrels in the week ended August 17, substantially higher than expected draw of 1.497 million barrels.
Crude oil futures for October delivery ended at $67.83 a barrel, down 3 cents from previous close.
On Wednesday, crude oil futures ended up $2.02, or 3.1%, at $67.86 a barrel, the highest settlement in almost two weeks.
Natural gas futures for September ended up 0.3%, at $2.964 per million btu.
Meanwhile, markets are awaiting the outcome of U.S.-China trade talks currently underway. Today is the second day of trade talks in Washington, between the Chinese delegation led by Chinese Commerce Vice Minister Wang Shouwen and David Malpass, the U.S. Treasury under secretary for international affairs.