Oil prices slipped from seven-year highs as traders took into consideration the drop in American inventories, Bloomberg reported.
Futures in New York slipped by 1.2%, down from the seven-year high when prices reached their highest since 2014. Commodities have declined as headwinds to China’s economy have grown.
Prior to this, the US crude market has soared as inventories have continued to decline in Cushing, Oklahoma. The spread between the December contracts breached $10 a barrel Thursday to mark a seven-year high.
Analysts believe that the decline of oil inventories will likely continue in the coming weeks and support oil prices, with modest supply growth amid recovering demand.
Indian imports surged this week, becoming the second major Asian oil importer and flagging high crude prices.