Oil prices fell more than 1 percent on Thursday, erasing gains from the previous session, after a rise in U.S. gasoline inventories pushed supplies in the world's top oil consumer to a record high, reinforcing worries of a global glut.
U.S. West Texas Intermediate crude for September delivery, the new front-month contract from Thursday, settled down $1, or 2.19 pct, at $44.75 a barrel, and last fell $1.04, or 2.27 percent to $44.71 a barrel at 2:41 p.m. ET.
The August contract expired on Wednesday after rising 29 cents, or 0.7 percent, to settle at $44.94 a barrel.
Brent crude's September contract was down $1.02 at $46.15 a barrel.
ABN AMRO senior energy economist Hans van Cleef said Brent could slip around $5 toward the $42-$43 a barrel level. "Near-term, there are still some downside risks."