Oil Near $57 as Smaller U.S. Stockpile Drop Adds to Economy Woes - Bloomberg

Oil Near $57 as Smaller U.S. Stockpile Drop Adds to Economy Woes - Bloomberg:

Oil declined as a smaller-than-expected draw in U.S. inventories added bearish sentiment to a market already reeling from gloomy economic news.

Futures lost 0.4% in New York, after earlier retreating 1.5%. While American crude and gasoline stockpiles both fell for a third week, they dropped less than forecast in a Bloomberg survey. Anxieties over demand resurfaced earlier this week following a slew of sluggish economic indicators from the U.S., China and Europe, even as the Organization of Petroleum Exporting Countries and its allies agreed to extend output cuts into 2020.

West Texas Intermediate oil for August delivery declined 23 cents, or 0.4%, to $57.11 a barrel on the New York Mercantile Exchange as of 8:40 a.m. local time. The contract gained $1.09 on Wednesday, recovering some ground after slumping the most since May 31 in the previous session.

Brent for September settlement slipped 4 cents to $63.78 a barrel on the ICE Futures Europe Exchange, after adding 2.3% on Wednesday. The benchmark global crude traded at a premium of $6.58 to WTI for the same month.