Oil prices fell on Thursday, with investors waiting to see how major producers will react to an emergency oil release by major consuming countries designed to cool the market, even as data points to healthy fuel demand in the US.
West Texas Intermediate (WTI) crude futures fell 9 cents, or 0.1 per cent, to $78.30 a barrel at 01.01 GMT, extending Wednesday's loss of 11 cents.
Brent crude futures fell 5 cents to $82.20 a barrel after falling 6 cents on Wednesday.
"The coordinated release of strategic oil reserves may be a short-term political victory for the parties involved, but we do not expect it to have a long-term impact on crude oil fundamentals," said Fitch analyst Jake Leiby.
Analysts said US Energy Information Administration data on Wednesday showed gasoline and distillate inventories fell more than expected, even as crude stocks rose, suggesting the market needs more oil.
"But the overall picture is that demand remains healthy, adding pressure to a tightening market," Capital Economics economist Kieran Tompkins said in a note.
All eyes are now on the Organisation of Petroleum Exporting Countries, Russia and allies, together referred to as OPEC , which are due to meet next week to discuss oil supply and demand.
"A bold move by oil importers has opened the door wide for OPEC to adjust its supply policy downwards at its next (meeting) on December 2, 2021," Rystad Energy analyst Louise Dixon said in an emailed comment.
The group added 400,000 barrels a day of supply each month, reversing record production cuts made last year when a pandemic curbed demand.
Three sources told Reuters that OPEC is not discussing suspending oil production increases, despite the decision by the US, Japan, India and other countries to release emergency oil stocks.
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Traders are also watching whether China will implement plans to release oil from its reserves.
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