Oil prices inched down Thursday as a rally in the U.S. dollar weighed on the market.
The U.S. dollar rose against other major currencies Thursday as robust economic data from the country bolstered market expectation for an interest-rate hike by the year-end. U.S. economy expanded at an annual rate of 2.3 percent in the second quarter, a moderate bounce from the revised 0.6 percent increase in the first quarter, the Commerce Department reported Thursday.
A stronger greenback made the dollar-priced crude more expensive and less attractive for buyers holding other currencies. Oil prices did not lose much as the concern of global supplies glut eased. U.S. crude supplies of last week decreased 4.2 million barrels to 459.7 million, 92.3 million barrels more than one year before, according to Energy Information Administration's Wednesday weekly report. U.S. crude production fell 145,000 barrels to 9.413 million barrels a day that week.
The West Texas Intermediate for September delivery moved down 27 cents to settle at 48.52 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery decreased 7 cents to close at 53.31 dollars a barrel on the London ICE Future Exchange.
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