U.S. West Texas Intermediate (WTI) crude () futures were down 35 cents or, 0.9% to $41.02 a barrel, and set for the first weekly drop in five weeks.
Brent crude LCOc1 settled down 36 cents, or 0.8 percent, to 44.07 US dollars a barrel.
Prices were pressured by extended declines in the USA equities market and by a report showing US job growth slowed further in August as financial assistance from the government ran out.
According to numbers by the economic times, nonfarm payrolls increased by 1.37 million jobs last month.
The Russian minister of energy said that demand has returned to 90 percent of pre-pandemic levels, but limited travel and work from home arrangements are slowing down the recovery. The jobless rate was marked by 4.9 percentage points higher than that in February.More news: Third phase of Sputnik V trials starts in Russian Federation
"This has been the summer driving season that wasn't", said John Kilduff, a partner at Again Capital LLC. "We need to see economic activity back up to get demand flowing". Citgo Petroleum Corp. and Phillips 66 Lake Charles refineries in Louisiana may be facing many more weeks of downtime as they wrestle with loss of power and damage related to Hurricane Laura.
A tanker loaded with 2 million barrels of Kuwaiti crude sailing toward India's Paradip refinery caught fire Thursday morning off Sri Lanka's coast, raising concerns about an oil spill.
"It is the latest data set that possibly caught the eye of those who ran long positions, and not even another record close in the US stock market was able to change the direction of the herd", Tamas Varga of oil brokerage PVM told Reuters.
A report from the Energy Information Administration (EIA) on Wednesday said gasoline demand in the USA dropped to about 8.8 million barrels per day last week, almost 0.4 million barrels down from a week earlier. On the week that ended on the 28th of August, the gasoline price was marked at 8.786 million barrels per day.
"Despite the price gains today, which somehow smoothed the losses of the week, the bigger market picture is overall bearish sentiment that kicked off with lower gasoline demand reports on Wednesday", said Paola Rodriguez-Masiu, analyst at Rystad Energy.More news: Jameela Jamil says Meghan Markle is a victim of ‘White Patriarchal Media’
Oil has recovered from historic lows hit in April, when Brent slumped to a 21-year low below $16 and US crude ended one session in negative territory.
The weakening USA dollar makes oil and other commodities priced in dollars more attractive to global buyers.
In July, Reuters reported that oil output cuts were found to be around 97 percent.
"Total products supplied over the last four-week period averaged 18.3 million barrels a day, down by 15.9% from the same period previous year".
Also rise of awareness to climatic change by the industrialists resulted in a drop in the price in recent months.More news: Pac-12 announces ‘groundbreaking’ rapid-results COVID-19 testing initiative