Oil prices weakened heading into U.S. crude's settlement Thursday after a larger-than-expected drawdown in U.S. crude stockpiles was balanced by a stronger dollar and position squaring ahead of the expiry of the front-month contracts in gasoline and diesel.
U.S. crude settled down 27 cents, or 0.55 percent, at $48.52 a barrel.
Benchmark Brent crude oil was down 15 cents a barrel at $53.20, after settling 8 cents higher in the previous session.
Oil has lost more than $10 a barrel over the past month, with global benchmark Brent nearing a six-month trough earlier this week and U.S. futures near four-month lows, amid a global glut, resurgent dollar and recent stock market tumble in China.
But an unexpectedly large weekly draw of 4.2 million barrels of crude brought the selloff to a grinding halt.
"There are people still digesting the data from yesterday and that's feeding into today's sentiment, but you also have a stronger dollar to deal with," said David Thompson, executive vice-president at Powerhouse, an energy-specialized commodities broker in Washington.
The dollar rose as news of a pickup in U.S. economic growth in the second quarter bolstered the chances for a U.S. interest rate hike as soon as September.
A robust U.S. dollar often weighs on commodities as raw materials such as oil, traded in the U.S. currency, become less affordable for users of the euro.