Picture used for illustrative purpose. File
Crude oil prices fell on Thursday after OPEC said it expected demand to drop more than expected, although data showing a decline in US inventories lent support.
Brent crude was down 26 cents or 0.6% at $45.17 a barrel by 0647 GMT, after a gain of around 2% in the previous session. West Texas Intermediate oil also lost 0.6%, a 25 cent decline to $42.42 a barrel which followed a climb of 2.6% on Wednesday.
The Organization of the Petroleum Exporting Countries said in a monthly report that world oil demand will fall by 9.06 million barrels per day this year, more than the 8.95 million bpd decline expected a month ago.
"OPEC released a bearish monthly forecast which indicated that world oil demand will fall more steeply in 2020 than previously forecasted due to the coronavirus and there are doubts about next year's recovery," said Avtar Sandu, senior manager commodities at Phillip Futures.
US crude oil, gasoline and distillate inventories dropped last week, however, as refiners ramped up production and demand improved, a government report showed.
Crude inventories fell by 4.5 million barrels, compared with analysts' expectations in a Reuters poll for a 2.9 million-barrel drop, data from the Energy Information Administration showed.
US fuel demand rose to 19.37 million barrels per day last week, the highest since March while crude output dropped to 10.7 million barrels per day from 11 million bpd.
The EIA's downward revision on Tuesday to a key U.S. oil production forecast for this year is also helping support prices.
US crude production is forecast to slide by 990,000 bpd this year to 11.26 million bpd, steeper than the 600,000 bpd decline it forecast last month.
Increasing uncertainty over a stalemate in Washington on a stimulus package to support recovery from the coronavirus pandemic may also weigh on prices, analysts said.
Brent crude fell 35 cents, or 0.8%, to $43.44 a barrel while West Texas Intermediate (WTI) crude was down 49 cents, or 1.2%, to $40.47 per barrel.
Brent crude was up 14 cents, or 0.3%, at $45.10 by 0550 GMT, heading for a gain of about 1.6% this week. West Texas Intermediate had gained 11 cents, or 0.3%, to $42.35. The US benchmark is heading for a gain of nearly 3% this week.
Brent crude futures fell 40 cents, or 0.9%, to $45.06 a barrel by 0701 GMT, having edged up 9 cents on Tuesday. US West Texas Intermediate (WTI) crude futures were down 34 cents, or 0.8%, at $42.55 a barrel, having ended unchanged the previous day.
The US economy plunged at an unprecedented rate this spring and even with a record rebound expected in the just-ended third quarter, the US economy will likely shrink this year,
Britain suffered a record collapse in economic output in the second quarter of 2020 when COVID-19 lockdown measures were in force and people had few opportunities to spend,
The Abu Dhabi National Oil Company (Adnoc) announced on Wednesday that one of its new trading entities, Adnoc Trading, has started derivatives trading as a direct market participant.