Oil prices fell on Thursday to extend steep overnight losses on easing fears of a supply disruption.
Benchmark Brent crude futures slipped 0.3 percent to $85.15 a barrel, while WTI crude futures were down 0.2 percent at $77.80.
Both contracts fell more than 3 percent on Wednesday as data showed a larger-than-expected build-up in U.S. gasoline inventories.
Data released by U.S. Energy Information Administration (EIA) showed crude inventories dropped by 3.7 million barrels in the week ended November 18th, larger than an expected drop of about 1.1 million barrels.
Gasoline inventories increased by 3.1 million barrels last week versus forecasts for an increase of just 383,000 barrels, while distillate stockpiles saw an increase of 1.7 million barrels in the week.
Meanwhile, supply-disruption fears eased in the wake of reports suggesting that the Group of Seven nations are seeking a price cap for Russian seaborne exports in the range of $65-70 a barrel, well above the former Soviet Union’s cost of production.
European Union governments have not yet agreed on a price and more talks are scheduled for today.