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Oil falls on weaker US gasoline demand, Gaza ceasefire hopes

Oil prices dipped on Thursday, pressured by weaker U.S. gasoline demand and reports of a United Nations draft resolution calling for a ceasefire in Gaza, according Reuters

Brent crude futures for May were down 68 cents, or 0.8 per cent, to $85.27 a barrel. They fell by 1.6 per cent on Wednesday.

U.S. West Texas Intermediate futures for May were down 69 cents, or 0.9 per cent, to $80.58 a barrel after a fall of about 1.8 per cent in the previous session.

Crude inventories in the United States, the world's biggest oil consumer, unexpectedly declined last week, the U.S. Energy Information Administration (EIA) reported on Wednesday.

Though gasoline inventories fell for a seventh week, down 3.3 million barrels to 230.8 million, gasoline product supplied, a proxy for product demand, slipped below 9 million barrels.  

The fall suggested that gasoline markets, which had underpinned a recent market rally, may have been overbought, according to Bob Yawger, director of energy futures at Mizuho.