Investing.com - Oil prices softened on Thursday after weekly data revealed U.S. crude and fuel stockpiles were more abundant than expected last week, stoking concerns of a supply glut.
In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in October traded down 1.03% at $94.56 a barrel during U.S. trading. New York-traded oil futures hit a session low of $94.22 a barrel and a high of $95.39 a barrel.
The October contract settled up 2.86% at $95.54 a barrel on Wednesday.
Nymex oil futures were likely to find support at $92.68 a barrel, Tuesday's low, and resistance at $96.00 a barrel, Friday's high.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) dropped by 0.9 million barrels in the week ending Aug. 29 from the previous week, less than market forecasts for a decline of 1.1 million barrels, which sent prices falling due to fears the U.S. and global economy is awash in the commodity.
At 359.6 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year, the Energy Information Administration said in a report.
Total motor gasoline inventories fell by 2.3 million barrels last week compared to market calls for a decline of 1.3 million barrels.
Distillate fuel inventories increased by 0.6 million barrels last week, confounding market calls for a draw of 0.5 million barrels, which also helped tip crude prices downward.
Upbeat U.S. service-sector data failed to seriously cushion losses.
The Institute for Supply Management reported earlier that its services index rose to 59.6 in August from 58.7 in July, far surpassing market forecasts for a downtick to 57.5.
A reading above 50 indicates expansion in the sector, and the index offset lackluster U.S. employment data.
Separately, on the ICE Futures Exchange in London, Brent oil futures for October delivery were down 0.54% at US$102.22 a barrel, while the spread between Brent and U.S. crude contracts stood at US$7.66 a barrel.