On Thursday, oil prices dipped further during Asia trade as the scope for an output freeze by key producers next month appeared somewhat slimmer with major supplier Saudi Arabia reportedly contributing more to the market.
In New York, September delivery crude futures sagged 0.40%, being worth $46.75 per barrel. Meanwhile, October delivery Brent futures sagged 0.36%, trading at $49.67 per barrel.
Overnight, American crude fluctuated during a volatile session on Wednesday, although crept to new five-week peaks, as market participants reacted to a sudden dip in domestic stockpiles the previous week along with further clues that Saudi Arabia could ramp up output to another all-time record in August.
On Wednesday morning, the US Energy Information Administration informed in its Weekly Petroleum Status Report that American commercial crude inventories dropped by 2.5 million barrels for the week ending on August 12.
Additionally, the EIA reported that overall motor gasoline inventories tumbled by 2.7 million barrels the previous week.
