Oil dips as economic concerns, supply and demand expectations weigh

REUTERS - Oil prices slipped yesterday after surging in the previous session on a larger-than-expected draw in U.S. gasoline stocks, as markets weighed macroeconomic concerns and demand versus supply expectations.
Brent futures were down 37 cents, or 0.5 percent, at US$ 70.58 a barrel at 10:25 a.m. EDT (1425 GMT), while U.S. West Texas Intermediate crude futures fell 39 cents, or 0.6 percent, to US$ 67.29 a barrel.

Both benchmarks rallied about 2 percent on Wednesday after U.S. government data showed tighter-than-expected oil and fuel inventories.

U.S. gasoline inventories fell by 5.7 million barrels, more than the 1.9 million-barrel draw expected by analysts, while distillate stocks also dropped more than anticipated, despite gains in crude stocks.

“Declining U.S. gasoline inventories raised expectations for a seasonal demand increase in spring, but concerns about the global economic impact of tariff wars weighed on the market,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.

“With strong and weak factors progressing simultaneously, it has become difficult for the market to lean decisively in one direction or the other,” he added.

U.S. President Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on European Union goods, as major U.S. trading partners said they would retaliate for trade barriers already erected by the U.S. President.