NEW YORK, Aug 27 (Reuters) - Crude oil futures edged lower on Wednesday after a report showed declining U.S. gasoline demand in the world's top oil consumer and a build at the key Cushing, Oklahoma storage hub.
In its weekly report, the U.S. Energy Information Administration said U.S. crude oil stocks fell by a greater-than-expected 2.07 million barrels last week, but inventories at Cushing, the delivery point for U.S. crude futures, rose 508,000 barrels. The four-week average for gasoline demand fell by 1.4 percent year-over-year.
"The larger-than-expected build at Cushing and decline in gasoline demand are negatives, as is the smallish gasoline drawdown," said John Kilduff, partner at Again Capital LLC in New York.
U.S. crude failed to break through Tuesday's lows or highs, testing resistance at both ends in what traders call an "inside day."
By 12:49 EDT (1649 GMT), U.S. crude fell 22 cents to $93.64 a barrel after settling 51 cents higher on Tuesday on stronger U.S. economic data.
ADVERTISEMENT
---
- U.S. crude stocks down 2.07 mln bbls - EIA
- Cushing up 508,000 bbls - EIA
- North Sea Buzzard field expected back on line Thursday
- Saudi June crude exports fall to lowest in nearly 3 years
---
Brent crude for October delivery fell by 7 cents to $102.43 a barrel after earlier rising to $103.07.
Its premium to U.S. crude widened 15 cents to $8.79 a barrel, having hit to its largest in two months on Monday at $9.41.
Oil benchmarks on both sides of the Atlantic have fallen by more than 10 percent since mid-June and remain on track to post a second monthly fall against a backdrop of lower imports by the United States and slowing growth in China and Europe.
Traders were watching to see whether the Buzzard oilfield in the North Sea, one of the biggest contributors to physical supplies underpinning Brent futures contracts, would return quickly after shutting again for additional maintenance.
Industry sources said the field was due to resume exports on Thursday after output was stopped for work on a drilling rig. It had restarted Monday after being shut for maintenance since July.
AMPLE SUPPLIES
Global oil supplies have been ample for much of the summer, capping price gains spurred by violence in OPEC members Iraq and Libya.
ADVERTISEMENT
Conflict with Islamic State militants in northern Iraq has not prevented oil exports from the south from holding at substantial levels, while Libya's exports have risen despite month-long clashes between rival militias.
In Europe, Ukrainian President Petro Poroshenko promised after negotiations with Russia's Vladimir Putin to work on a ceasefire plan to defuse the separatist conflict in the east of Ukraine.
Any significant moves towards a truce between Kiev and two rebel eastern regions could mean an eventual move towards ending sanctions on Russia, the world's second-largest oil exporter.
Saudi crude exports fell in June to their lowest levels in almost three years as oil use in its power sector rose, official data showed, though industry sources say OPEC's largest producer raised output in July.
---
By Anna Louie Sussman.
