West Texas Intermediate unrefined futures CLc1 dropped by 8 cents to $59.50 a barrel.
U.S. oil companies on Monday began restoring some of the almost 74% of production that was shut at U.S. Gulf of Mexico platforms ahead of Hurricane Barry, the U.S. offshore drilling regulator said.
Brent crude futures fell $1.01 a barrel to $65.47 by 1:04 p.m. EDT (1704 GMT).
Crude inventories fell by 1.4 million barrels in the week to July 12 to 460 million, industry group the American Petroleum Institute said on Tuesday.
BSEE also said 171 production platforms, or 26%, have not resumed operating, down from 267 platforms on Monday.
"Gains were limited due to the headline Chinese data released earlier on Monday, showing that China's economic growth in the second quarter of this year was at 6.2 percent, in line with expectations but the weakest growth in the country in 27 years", reports OilPrice.com. About 73 per cent of crude output in the Gulf of Mexico was halted as of Sunday but some producers are preparing to return workers to offshore platforms as storm Barry weakens after making landfall.
China's economy slowed to the weakest pace in nearly three decades in the second quarter amid an ongoing trade dispute with the US, while the International Energy Agency said Friday that global inventories unexpectedly swelled in the first half of this year.
In its wake, offshore pure fuel manufacturing within the Gulf of Mexico was down 61%, or 1.7 billion cubic ft per day (cfd), on Monday, BSEE stated.
"In the short-term, given that we're in peak driving season, we're going to continue to see inventories draw", Sanford C. Bernstein analyst Oswald Clint said in a Bloomberg TV interview. Still, tensions with Iran are providing some support to oil, he said.
That followed similar comments from the Islamic Republic's foreign minister, Mohammad Javad Zarif, the first signs of a possible diplomatic solution since the USA sought to curb the Middle East producer's revenues by squeezing its oil exports. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.