Crude oil future erased early rally and ended lower on Thursday as worries about the outlook for energy demand due to slowing global economic growth weighed on prices. The US Commerce Department reported the world’s biggest economy unexpectedly contracted in the second quarter, fuelling concerns about a recession that could hit energy demand. However, Russia’s decision to cut gas supplies via Nord Stream 1, its main gas link to Europe, to just 20% of capacity, contributed as well to the uptick in oil prices earlier in the day.
Benchmark crude oil futures for September delivery fell $0.84 or about 0.9 percent to settle at $96.42 a barrel on the New York Mercantile Exchange. However, Brent crude for September delivery rose $0.52 or 0.48 percent to settle at $107.14 a barrel on London's Intercontinental Exchange.