Oil drops $1 as subdued Chinese consumption outweighs inventory draws

- Oil prices declined on Thursday due to concerns over weak Chinese demand overshadowing positive U.S. inventory data.

- Brent crude futures dropped by 1.2% to $80.70 a barrel, while U.S. West Texas Intermediate crude fell by 1% to $76.67 in September.

- Despite U.S. crude and gasoline inventory draws, apprehensions about China's demand weakness and geopolitical tensions in the Middle East continue to impact market sentiment. Furthermore, expectations of Fed interest rate cuts and wildfires in Canada add to market uncertainties.

Oil prices retreated on Thursday as concerns about subdued Chinese demand outweighed positive U.S. inventory data. Brent crude futures declined by 1.2% to $80.70 a barrel, and U.S. West Texas Intermediate crude fell by 1% to $76.67 in September. The market sentiment remains cautious due to China's weak demand, geopolitical tensions, anticipated Fed interest rate cuts, and wildfires in Canada impacting oil consumption.