Oil futures slipped on Friday, with prices on both sides of the Atlantic heading for their biggest weekly drops since June, as demand and ample fuel supplies offset support from a weaker dollar.
The volume of crude arriving in China, the world’s largest crude importer, is set to slow in September after rising for five straight months as its refiners gradually digest bloated inventories, according to data on
In the United States, refiners awash in diesel inventory are unlikely to boost output soon.
“Soft margins are likely to cap further crude rallies and we anticipate further run cuts this fall to expedite the of product stocks,” Capital analyst Mike Tran said in a note.
Production cuts led U.S. gasoline inventories to fall at a ” pace in the past two months, even though U.S. mobility indicators suggest that driving patterns have largely plateaued over the past 6-8 weeks, he added.