Brent Crude price dipped on the last day of the business week, the biggest drop since June that resulted due to weakening dollar.
According to the details, Brent Crude price fell 44 cents to $43.63 a barrel while U.S. West Texas Intermediate was at $40.94 a barrel, down 43 cents.
The volume of crude arriving in China set to slow in September after rising for five straight months as its refiners gradually digest bloated inventories.
In the United States, refiners awash in diesel inventory are unlikely to boost output soon.
Production cuts led U.S. gasoline inventories to fall at a “manic” pace in the past two months.
Even though U.S. mobility indicators suggest that driving patterns have largely plateaued over the past 6-8 weeks, he added.
Analysts expect soft margins to cap further crude rallies.
“We anticipate further run cuts this fall to expedite the rebalancing of product stocks,”
On Wednesday, the U.S. Energy Information Administration (EIA) reported that crude inventories fell by 9.4 million barrels for the week to Aug. 28, much larger than the expect fall of 1.2 million barrels.