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Reuters: Oil slips on profit-taking, weak demand outlook


 Oil prices dipped on Thursday after sharp gains in the previous session following a surprise draw in U.S. crude inventories, with concerns over a weak demand outlook adding to downward pressure. Brent crude futures LCOc1 fell 33 cents, or 0.5%, to $60.84 a barrel by 0335 GMT, Reuters said. The international benchmark crude rose 2.5% on Wednesday to settle at $61.17 a barrel, levels not seen since September 30.

West Texas Intermediate (WTI) crude futures CLc1 dropped 44 cents, or 0.8%, to $55.53 per barrel. U.S. crude closed 3.3% higher in the previous session. "Oil is seeing profit-taking in Asia after last night's sharp up-move," said Jeffrey Halley, senior market analyst at OANDA. U.S. crude inventories fell 1.7 million barrels in the week ended October 18, compared with analysts' expectations for a 2.2 million barrel build, data from the Energy Information Administration showed. This was in stark contrast with earlier inventory data released by industry group the American Petroleum Institute (API), which showed a build of 4.5 million barrels in U.S. crude stocks. The EIA said the drawdown in weekly stocks came as refineries hiked crude runs and oil imports fell, which prodded a jump in both benchmark crude grades on Wednesday. But persistent concerns about weak demand outlook continue to weigh on market sentiment, traders said.