Oil prices continued to edge lower on Thursday, following a sharp drop in the previous session as the Group of Seven (G7) nations looked to put a price cap on Russian oil above the current market level. G7 nations expected to limit Russian oil price in the range of $65-70/bbl.
As of 12:07 BKK time, Brent crude fell 0.22% to $85.22 a barrel, while West Texas Intermediate decreased 0.09% to $77.87 a barrel. Each benchmark fell 4% yesterday.
Meanwhile, the U.S. reported a rise of gasoline stocks by 3.1 million barrels, well over the 383,000 barrel build estimated by analysts. The Energy Information Administration (EIA) showed a 3.7 million barrel draw in crude inventories, compared to a forecast for a drop of 1.1 million barrels.
Oil prices were also pressured by a damp economic outlook by the Organisation for Economic Cooperation and Development (OECD) in anticipation for a deceleration in global economic expansion next year.
Meanwhile, a new Covid-19 wave in China also raised concerns over a decline of oil demand after Shanghai tightened its rules on Tuesday.