Oil prices slipped on Thursday following concerns over weak economic data from the world’s top economies, clouding oil demand outlook.
Despite falling stockpiles in the US due to larger than expected drawdown last week, the Marco economic data from across the world weighed down the prices.
Brent crude dropped 10 cents to $66.71 a barrel, while US crude slipped 30 cents to $60.20, Reuters reported.
“Saudi Arabia might be declaring victory on the back of the drop of drilling rigs in the U.S., but the Department of Energy weekly data is not yet showing any significant drop of production.”
Despite easier monetary policy, the world’s top energy consumer, China, did not show enough promise in April to drive oil demand. Similarly, Germany too faltered during the first quarter.
After four months of continuous gains, US crude stocks for the second week fell by 2.2 million barrels, compared to an expected growth of 386,000 barrels by analysts.
Inventories still stood at almost 90 million barrels higher than this time in 2014, even after larger drawdown.
Concerns over supply still continued, despite the rise that was witnessed in output in North Dakota.
PetroMatrix’s Olivier Jakob told the news agency in a note: “Saudi Arabia might be declaring victory on the back of the drop of drilling rigs in the U.S., but the Department of Energy weekly data is not yet showing any significant drop of production.”