Oil prices extend losses as demand concerns outweigh tight supply

Shafaq News / Oil prices fell on Thursday for a second straight session, as demand concerns outweighed tight global supply after U.S. government data showed tepid gasoline demand during the peak summer driving season.

Brent crude futures dropped 77 cents, or 0.7%, to $106.15 a barrel by 0427 GMT after slipping 0.4% in the previous session. U.S. West Texas Intermediate crude futures fell 88 cents, or 0.9%, to $99.00 a barrel following a 1.9% drop on Wednesday.

Oil prices have been volatile as traders have had to square tighter global supply because of the loss of Russian barrels following the country's invasion of Ukraine, with recessionary worries that could weaken energy demand.

U.S. gasoline inventories rose 3.5 million barrels last week, government data showed on Wednesday, far exceeding analysts' forecasts in a Reuters poll for a 71,000-barrel rise.

Product supplied of gasoline - a proxy for demand - was about 8.5 million barrels per day, or about 7.6% lower than the same time a year ago, the data showed.

(Reuters)