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Crude falls after 1% gain in previous session
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US demand to ease at the end of summer driving season
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Russian oil supplies through Druzhba pipeline restart
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Indian buying pattern of Russian oil in focus
(Updates prices, adds quote)
By Alex Lawler
LONDON, Aug 28 (Reuters) - Oil fell on Thursday after
rising in the previous session, pressured by expectations of
lower U.S. fuel demand with the end of the summer travel season
and by the restart of Russian supply to Hungary and Slovakia
through the Druzhba pipeline.
Crude had risen on Wednesday after official data showed
U.S. crude inventories fell by 2.4 million barrels in the week
ended August 22, compared with analysts' expectations in a
Reuters poll for a 1.9-million-barrel draw, a sign of strong
demand.
However, oil market participants see the upcoming U.S.
Labor Day long weekend as the unofficial end of the summer
driving season, and the onset of lower U.S. demand for gasoline.
Brent crude futures dropped 19 cents, or 0.3%, to
$67.86 at 0820 GMT, and West Texas Intermediate (WTI) crude
futures declined 29 cents, or 0.5%, to $63.86.
"This weekend's U.S. bank holiday marks the end of the
driving season and gasoline has hardly been the panacea hoped
for in terms of demand," said John Evans of oil broker PVM.
"Any short-term reasons to be friendly towards oil
prices are diminishing," he added, citing the Druzhba
resumption.
Russian crude supplies to Hungary and Slovakia through the
Druzhba pipeline have restarted after an outage caused by a
Ukrainian attack in Russia last week, Hungarian oil company MOL
and Slovakia's economy minister said on Thursday.
Traders are also watching out for how New Delhi responds to
pressure from Washington to stop buying Russian oil, after U.S.
President Donald Trump doubled tariffs on imports from India to
as much as 50% on Wednesday.
"India is expected to continue purchasing crude oil from
Russia at least in the short term, which should limit the impact
of the new tariffs on global supply," IG market analyst Tony
Sycamore said.
Lending some support to prices, Russia and Ukraine have
stepped up attacks on each other's energy infrastructure.
Russia launched a massive drone attack on energy and gas
transport infrastructure across six Ukrainian regions overnight,
leaving more than 100,000 people without power, Ukrainian
officials said on Wednesday.
(Additional reporting by Sam Li in Beijing and Siyi Liu in
Singapore; Editing by Louise Heavens)